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RBA will slow pace of tightening to 25bp next month

Consumption has recovered faster than we had expected. However, income growth has disappointed and the savings rate is falling more sharply than we had thought. That leaves less scope for households to cope with soaring living costs and mortgage payments and we're lowering our below-consensus forecast for 2023 GDP growth further. Against this backdrop, Reserve Bank of Australia Governor Lowe signaled this week that the Bank will slow the pace of tightening over coming months

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