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Sarah Hunter, outside the RBA building, wearing a floral dress.

Inflation has a smaller and slower response to rate cuts than economic growth.

"The future pathway for the cash rate is not predefined,"
Dr Hunter said.

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"As this is the most consistent signal of a bear, we see growing risk that stocks fall 20 per cent from their Valentine's Day peak."

"My guess is that, from the viewpoint of Australia, those actions over in the US probably make it a little more likely that we get the next cut rather than less likely. But, even then, not until May."
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