The RBA hikes the rates, as expected, to 3.10%, and signals more to follow, albeit “data dependant”.

So far, the initial reaction is consistent with one of surprise, that this (not the move, but the comments that accompany them) are being interpreted as a little more hawkish than expected. You can see that rate sensitives (REITs) fell, the dollar rose, relative to 2.30pm, yields lifted and risky assets (ASX 200) fell.

Economic theory tells us that’s a monetary shock, at the margin.

Interestingly, and forgive the eyeballs, you’ll have to zoom in, the return of the “not on a preset-path” part of policy guidance does lend some further support to “pretty close to the end”.

They tend to use such language to remind people that they aren’t charging ahead into the abyss (intentionally, at least), and will moderate their stance if need be.

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