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Governor Philip Lowe took a more dovish tone in announcing the central bank would leave the cash rate target at 3.6 percent, as markets welcomed the chance to let the 350 basis points of tightening already engineered to take full effect on the economy.
Investors are flocking to risk stocks in the hope of an early Fed pivot following a better-than-expected US inflation report. While it is too early for a pivot, according to Atchison Consultants, the longer-term outlook for fixed income is positive.