The RBA’s pessimism hasn’t swayed these economists from rate cut calls
The central bank painted a bleak picture of higher inflation as it cautioned against further easing. Plenty of people in the market disagree with its forecasts.
The smoke signals from the Reserve Bank of Australia’s Martin Place headquarters were pretty bleak this week for borrowers hoping for big rate cuts to come. Governor Michele Bullock said the rate-cutting cycle may be close to finished, surprised by a jump in underlying inflation.
The central bank held the cash rate at 3.6 per cent as expected on Tuesday, but called for caution on further easing, citing inflationary pressures, a tight job market, and rising house prices.
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Cécile Lefort is a markets reporter based in the Sydney newsroom. Cécile worked in New York and Hong Kong writing about global capital markets. Email Cecile at cecile.lefort@afr.com
