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The AFR View

Rate cut can’t paper over Australia’s economic problems

The near-term focus on the RBA highlights the worrying fact that an election fought mainly over the cost of living will mask Australia’s budget and growth problems.

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The Reserve Bank of Australia’s first board meeting of the year will be one of the most politically charged in recent memory.

Expectations that the first interest rate cut since 2020 would arrive in the middle of next month received a boost on Wednesday when November’s underlying inflation reading came in softer than expected at 3.2 per cent. The data showed a slight fall in the central bank’s preferred measure of inflation.

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    Original URL: https://www.afr.com/politics/federal/rate-cut-can-t-paper-over-australia-s-economic-problems-20250109-p5l32a