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Labour markets starting to support case for rate cuts

The latest data from major advanced economies typically show that unemployment rates are rising and pay pressures are easing. While wage growth is still too high for comfort in most cases, we suspect that further signs of a slowdown will support the case for rate cuts by the end of Q2 in the US, euro-zone, UK and Canada, with Australia following in Q3. Japan is the exception where pay data justify a rate hike.

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