Is the RBA softening the ground for early 2025 rate cuts?
The RBA held the cash rate at 4.35%, but its dovish tone has reignited speculation of early rate cuts, with February now back in play for some economists.
Reserve Bank governor Michele Bullock could not avoid questions about whether a February rate cut is back in play when she fronted the media on Tuesday afternoon.
Underpinning the excitement about earlier-than-expected cuts was the post-decision statement just published by the central bank board, which economists widely interpreted as “dovish” and opening the door to an easing cycle sooner than many expected.
“I honestly don’t know if we’ll be cutting in February,” Bullock said when pressed about the chances.
Yet she explained there were “many configurations of data that might potentially lead us in that direction” of cutting in February or early in the year.
