RBC expect the RBA to cut its cash rate in February 2025 (previously forecast May 2025)

RBC has been looking for a rate cut from the Reserve Bank of Australia at the May 2025 meeting, citing:

• inflation in Australia remaining elevated, above RBA target
• slower growth not a reason for the RBA to cut this year
• RBA didn’t hike as much as the Fed or ECB so the RBA easing path is going to be a lot more gradual

RBC have dragged their forecast forward now to February 2025 instead.

Where the RBA, and inflation, is at in Australia.

Markets are pricing a cut at the February 2025 meeting of 25bp.

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