ASX 200 dumps on nasty CPI print, 2024 rate cuts now impossible, but is a hike back on table?

Today's March quarter Consumer Price Index (CPI) data dominated proceedings. There's no way of sugar coating it, and if you did, it would probably cost you about 3.6% more for the sugar coating than it did last year – a bit more than the 3.4% p.a. the market was hoping for.

The release of the CPI data at 11:30am EST slashed around 0.5% off the benchmark S&P/ASX200 in just a few minutes, and as much as it tried, our market failed to recoup any of those losses by the close.

There was one thing which soared today, but it's opposite of what investors want to see. Yields on Australian 2-year government bond, a benchmark for the RBA's official cash rate in the near term, spiked 0.12% and closed above 4.4% for the fist time since early December last year.

Markets just pushed the first RBA rate cut well into 2025. On that sombre note...

Let's dive in!

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