Two economic developments this week suggest that interest rate cuts could be coming before the next federal election. If such cuts eventuate, it would be a game-changer for the political debate.
Two economic developments this week suggest that interest rate cuts could be coming before the next federal election . If such cuts eventuate, it would be a game-changer for the political debate. forecast inflation to gradually ease back inside the Reserve Bank of Australia’s 2 per cent to 3 per cent target bandWhile it is premature to expect local rate cuts in the short term, money markets are now pricing in two 0.25 of a percentage point interest rate reductions by the RBA in mid-to-late 2024.
Moreover, the prospect of a soft landing was boosted on Thursday, when employment figures showed that the labour market is gradually cooling, but not tanking.It is the sort of cooling the RBA wants to see to help ease inflation. Most incumbent workers are keeping their jobs, but not every school-leaver and new migrant is securing work when they enter the labour marke
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