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While the early summer rate cuts were targeted at providing immediate relief and cushion to sentiment in the pandemic struck economy, the MPC will likely consider delivering the next rounds of cuts when it can potentially be more effective in reviving economic activities. The upside surprise in the June CPI print was driven largely due to intermittent supply disruptions and was far from any demand overheating. While optically even core inflation was higher, items such as precious metals made a meaningful contribution.

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