RBA Minutes: Soft Q2 CPI could see the a rate cut delivered next month - BBH

Research Team at BBH, notes that the Minutes from the recent Reserve Bank of Australia meeting reinforce ideas that a soft Q2 CPI report next week could see the a rate cut delivered next month as well. 

Key Quotes

“Indicative pricing in the derivatives market imply about a 60% chance of a 25 bp cut, up from 45% last week.  The $0.7490 area, which the Australian dollar has tested in the European morning, represents a 50% retracement of the post-UK referendum bounce, while $0.7475 is a 38.2% retracement of the larger rally since late-May.”