This week will make or break the case for a rate cut in February
The US Federal Reserve will make its next decision on interest rates this week, but it is local data that will be even more critical for the Reserve Bank of Australia's next steps.
It’s going to be a short week but also a crucial one for the future of interest rates. New and comprehensive local inflation data will set the tone for the first Reserve Bank meeting of the year next month, and several offshore central banks will meet to determine rates.
Here’s what you need to know about the key economic data releases this week.
New numbers
The data: Consumer Price Index, December quarter and monthly indicator, Australian Bureau of statistics
When: Wednesday 29 January 2025
What to expect: There will be another significant divergence between the headline and the underlying or trimmed mean inflation result this quarter, with government energy rebates and cost-of-living assistance complicating the picture. The RBA will largely be focusing on the underlying figure when it makes its rate decision next month.
