It is an opportune time to reflect on lessons learnt over the past 12 months. While much played out as expected, with stubbornly sticky inflation restricting the extent to which central banks could lower interest rates, there were also surprises.

At the start of 2024, financial markets were thinking the Reserve Bank of Australia’s cash rate could fall as low as 3.7 per cent by December. That would be equivalent to pricing in almost three rate cuts by year-end.