Everyone expects the Reserve Bank to start taking its footoff the OCR accelerator at Thursday’s Monetary PolicyStatement. “Soon” has arrived, and not before time. Themarkets and pollsters are wholeheartedly looking for a25bp hike, to 2.75%, as are we. So, presuming the Bankdoesn’t surprise with a 50 – much more likely than nothingat all – the real news will be in what the Bank suggests itwill do with the cash rate over the rest of this year andthrough next. How much more to come, and when?
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