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Country Focus

Hotter CPI Validates RBA Caution, ACGBs Still Unattractive

by Felix-Antoine Vezina-Poirier, Chief Strategist  

Australian inflation surprised higher in August, validating the RBA’s cautious stance and supporting an underweight on ACGBs. Headline CPI rose to 3.0% y/y from 2.8%, the highest in a year and at the top of the RBA’s 2-3% target range. While the central bank…

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