When betting opened immediately after last week’s RBA announcement, the odds with online bookmaker sportsbet.com.au on an interest rate decrease in September were $11.
This has now been slashed into just $1.80, while the price for rates to remain unchanged in September has ballooned from $1.08 out to $1.72.
In betting on the next move in interest rates – irrespective of when the next move occurs – a cut in rates is the hot $1.36 favourite, ahead of a rise at $2.90.
“The shift in betting on September’s RBA interest rate announcement is astonishing and almost every bet we’ve taken in the past 48 hours has been for a cut in rates,” sportsbet.com.au’s Haydn Lane said.
September RBA Interest Rates Announcement Betting Market @ Sportsbet
- $1.72 Rates to stay the same (out from $1.08)
- $1.80 Any decrease (in from $11)
- $21 Rise between 1 and 25 basis points (out from $6)
- $81 Rise between 26 and 50 basis points (out from $26)
- $151 Rise 51 basis points or more (out from $81)
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Next Interest Rates Move
- $1.36 Cut
- $2.90 Rise