Rate cuts are front of mind for economists. Here's what they expect.
The Reserve Bank’s pre-Christmas shift in tone has sparked debate over when rate cuts will begin. Here’s what the experts think is going to happen next.
Indebted households and businesses have felt the double whammy of high inflation and rising interest rates over the past two years.
Now, there’s finally some optimism that rate cuts might be on the horizon, following a significant shift in the Reserve Bank’s language at the end of last year suggesting the next move would be down.
Of course, not even RBA governor Michele Bullock knows for certain when the central bank board will choose to cut rates. The bank has continually said it will remain data-dependent and ready to act when confident inflation is heading sustainably back to the 2% to 3% target band.
With the RBA board set to meet for the first time in 2025 — with a decision due on 18 February — excitement is building that monetary policymakers could soon kick off a cutting cycle. The market is currently pricing in a rate cut for the 1 April meeting, with February also in play.
