Breaking down Bullock: Reading between the lines on the rate cut

John Kehoe and Jessica Gardner

Feb 18, 2025 – 4.23pm

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Investors were almost certain the Reserve Bank board would cut the cash rate to 4.1 per cent from 4.35 per cent on Tuesday and they were proved right.

The case for a cut centred on the expectation that underlying inflation is falling and will soon enter the central bank’s 2 per cent to 3 per cent target band.

John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury.

Jessica Gardner is Deputy editor - News. She has previously edited the Companies and Markets section.