Hopes fade for an early 2025 rate cut in Australia

The next quarterly CPI data will not be released until late January 2025 – in time for the February 2025 RBA board meeting – and much hinges on how those numbers land, writes Brendan Rynne.

The latest consumer price index (CPI) results reveal annual headline inflation of 2.1 per cent - below market expectations and continuing to hover around the lower bound of the Reserve Bank of Australia (RBA) target range. But hopes of an early rate cut next year are fading, given that both the seasonally-adjusted headline rate and, importantly the trimmed mean inflation rate lifted over the month. There are a number of standouts in the data that suggest there is likely to be a stickiness i...

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Authors: Brendan Rynne

Published Date: 28 November 2024