Australia’s largest fund manager expects RBA hold today, cut in May

The Reserve Bank of Australia policy statement will be released at 2.30pm Sydney time on Tuesday, December 10, 2024.

• 0330 GMT / 2230 US Eastern time on Monday
• Reserve Bank of Australia Governor Bullock will hold her press conference an hour later

I posted a preview yesterday:

• Reserve Bank of Australia meeting on Tuesday, December 10, 2024 – Statement/Bullock focus

And this morning:

• Reserve Bank of Australia monetary policy Statement due today – what to watch

According to the Bloomberg survey of analysts the Bank is expected to leave its cash rate on hold at 4.35%. That is the unanimous expectation of analysts.

From Shane Oliver, head of Investment Strategy & Chief Economist at Australia’s AMP:

• forecasts a rate cut in May
• “However, with inflation trending down and weaker than expected growth we think the RBA should cut earlier and there is still a high chance of a February cut”
• Our Australian Inflation Indicator still points down for inflation.

This article was written by Eamonn Sheridan at www.forexlive.com. Source