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RBA to deliver final 25bp rate hike next week

While inflation is moderating a touch faster than the RBA had anticipated, the continued acceleration in services inflation will probably prompt the RBA to deliver a final 25bp rate hike next week. And with the Bank willing to tolerate a slower return of inflation to target and hiking rates less aggressively than many other central banks, we think it will be a laggard when it comes to easing policy again.

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