Inflation figures put second interest rate cut in doubt

The figures again show the RBA’s decision to cut rates in February would have been a line-ball call, despite the slowing economy benefiting from some easing of monetary policy, as outlined by KPMG Australia’s Chief Economist Brendan Rynne.

February's headline inflation figures released for the month of January remained steady in annual terms at 2.5 percent, in line with consensus expectations. However, it should be noted that over the past five months, the seasonally-adjusted monthly headline consumer price index (CPI) has risen consistently, from 2.2 percent in September to 2.7 percent in January and is now close to core inflation levels. The figures again put the spotlight on the Reserve Bank of Australia's (RBA) decision t...

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Authors: Brendan Rynne

Published Date: 27 February 2025