Bank of America economist Micaela Fuchila says the RBA will be reluctant to cut rates until 2025, given how long it will take to return inflation to target.
Price pressures will come down much quicker than anticipated as consumer demand, particularly for services, drops, giving breathing room for the Reserve Bank to hold rates for the year ahead, predicts Micaela Fuchila, Bank of America Australia’s economist.
“They are done raising rates and the next move is down,” she says. She cautions, however, that the central bank isn’t likely to rush to cut rates because Australia’s tightening cycle lags other advanced economies.
Cecile LefortMarkets reporterCécile 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
