There are only two horses in the RBA race according to the bookies, the 25 bps rate cut and the 50 bps rate cut, with any other outcomes seen as total outsiders. The 25 bps cut is a short-priced favourite at $1.35 (or 3/1 on in old parlance) with 50 bps cut being quoted at around 4/1 against, which is surprisingly short in my view. As we know, never argue with the money!
Some talk of a possible 37.5 bps move as well but the bookies aren’t showing any odds on that one.
