With Australian inflation surprising to the upside in August, markets now expect the RBA to deliver just one more 25bp cut this cycle, rather than two. However, with business surveys showing output prices softening again and wage pressures on track to ease further, we think investors may be overreacting. In other news, Dr Anna Breman, the First Deputy Governor of the Riksbank, will assume the role of Governor of the RBNZ in early-December. We suspect the Bank's easing cycle will already be at a close by the time she takes the helm.
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