Australia will only cut rates in late 2025, ex-RBA official says

(Image: Bloomberg)

Fri, 10 May 2024

By Swati Pandey (Bloomberg) -- Australia’s interest-rate settings are “a bit too low” to rapidly stamp out inflation and as a result, policy easing is only likely to begin in the second half of 2025, according to former senior Reserve Bank official Jonathan Kearns.When the central bank does start cutting, it will likely only do so twice in six months because it didn’t go “much above the neutral rate in the first place,” said Kearns, who left the Reserve Bank of Australia (RBA) last year after almost thre...

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