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The Reserve Bank of Australia will keep the official cash rate on hold at 1.75 per cent tomorrow, says HSBC – with last week’s stronger GDP figures likely to calm fears about low inflation.
In an RBA Observer note on Friday, HSBC chief economist Paul Bloxham pointed to the “upside surprise” of last week’s first-quarter GDP figures, which grew by a stronger-than-expected 3.1 per cent year-on-year.
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