Australia on Pace for 0.6% GDP Growth in Q4 2024 With Upside Risk, ANZ Research Says
Reserve Bank of Australia's February Minutes Reinforce Projected One Last Rate Cut in 2025, Says ANZ Research
The Reserve Bank of Australia made its first interest rate cut without committing to further easing, putting pressure on the Australian Dollar as the US Dollar strengthens.
The Reserve Bank of Australia has released cautious signals, and the market expects there is still room for interest rate cuts in the future. The minutes of the RBA's February meeting indicate that despite the slowing economic growth, the job market in Australia remains strong, and wage pressures have not been completely alleviated, thus there is still uncertainty regarding the future policy path. The meeting discussed the possibility of maintaining interest rates or further lowering them, ultimately concluding that the current economic situation allows for a moderate easing of policy, but careful assessment of the latest changes in inflation and employment data is still necessary. "Members unanimously agreed that this rate cut does not imply that further rate reductions will occur in upcoming meetings."—Minutes of the Reserve Bank of Australia meeting. Market expectations suggest that the Reserve Bank of Australia may cut rates at least this year.
The Reserve Bank of Australia has loosened its monetary policy for the first time in four years, holding on to the "data steering wheel" after cutting interest rates.
After lowering interest rates for the first time in four years, the Reserve Bank of Australia’s policy committee takes a cautious approach to future policy easing, concerned that rapid rate cuts could jeopardize the return of inflation to the target midpoint of 2.5%.
Australia's Top Banker Expects Slower, Shallower Rate-Cut Cycle
RBA Signals That Further Cuts Are Not Assured