Steph Chalmers

So very basic explanation of that is people essentially buying derivatives or selling derivatives to kind of hedge themselves against future interest rate moves.

So it gives a pretty good indication of where the market sees rates going.

Exactly.

So I think to see the RBA move against the market isn't that common.

And they would say they're not moving because of the market, but they do factor in market pricing for interest rates into their forecasts.

So when we get the statement on monetary policy tomorrow, which includes the forecast for things like inflation, employment and growth, that'll be

predicated on whatever the financial market is predicting in terms of interest rates because they obviously have to pick some setting to base their forecasts on.

But it isn't impossible for them to go against the market.

We saw last year there was one month where people –

I think it was people thought rates were going to be cut and they kept them on hold.

I think that's what happened one month.

And that was quite shocking because it kind of makes you think that there's a reason they are wanting to do this more than just following the trend.

So I think if we saw the RBA hold tomorrow, it would be sending a very strong signal because the market is so heavily weighted towards a rate hike.

So you have to think that they are factoring that into their thinking as well.

the signal they're sending and so much of what the RBA does as well is around messaging because as you say people are putting their money in places based on where they think the central bank is going so that has a real world effect as well.

Bye.

And I'm ABC Business Reporter Steph Chalmers.

Yeah, I mean, the Oreo biscuits really exemplify what we're hearing about over, it's over 260 items that Woolworths is alleged to have done this behaviour on.

So essentially, they're saying that discounts Woolies offered were false because they artificially raised the price ahead of then dropping the price so that they were able to offer promotion.

So if you look at the Oreos family pack, as you discussed,