A February interest rate rise is looking less and less likely with many economists now suggesting the next move will be a rate cut later this year.
Inflation is falling faster than expected and the government hopes to roll out policies to push it down further.
Australia’s cash rate is now higher than the rate of inflation, with annualised headline inflation coming in at 4.3 per cent in November, compared to a cash rate of 4.35.
Money markets are now pricing in a rate cut by August this year with another cut predicted for January next year.
A third is almost priced in for June 2025.
(SKY NEWS)
