Reserve Bank of Australia expected to deliver 75bp of rate cuts in 2024

CBA said again today that they expect the first rate cut from the RBA in September, followed by another 2 for a total of 3 cuts of 25bp each in 2024.

CBA on the data earlier:

  • Momentum in the economy has ground to a halt
  • Household consumption inched higher but has gone significantly backwards on a per capita basis over the past year.
  • Recurrent public spending grew at a trend-like pace, business investment pushed higher and net exports made a decent contribution to growth.
  • Residential construction fell sharply and the supply and demand imbalance in the housing market has further widened.
  • Nominal GDP increased by 1.4%/qtr due to higher domestic prices, a lift in the terms of trade and the small lift in production.
  • Real household disposable income posted a welcome increase over the quarter but sits 0.6% lower over the year.
  • The savings rate increased to 3.2% but still sits comfortably below its pre-pandemic five year average of ~6.0%.


This article was written by Eamonn Sheridan at Source