RBA rate caution ‘rubbish’ with more cuts to come

Cecile Lefort and Jonathan Shapiro

Feb 19, 2025 – 4.35pm

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Bond managers are betting as many as three more rate cuts from the Reserve Bank of Australia this year, dismissing governor Michele Bullock’s more cautious stance after the central bank cut rates for the first time in more than four years.

Money market are pricing in a total of 46 basis points of monetary easing by year-end which is the equivalent of between one and two rate cuts with a 77 per cent chance the RBA will go again in May.

Cecile Lefort is a markets reporter based in the Sydney newsroom.

Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.