Bondi Partners Senior Advisor Peter McGauran says lower-than-predicted November inflation figures “foreshadow” a “reduction” in interest rates in the second half of 2024.
Inflation fell to 4.3 per cent in November from 4.9 per cent in October, which was lower than economists’ prediction of 4.4 per cent.
IG market analyst Tony Sycamore said before the release of the figures, the rates market assigned a ‘100 per cent chance’ of a rate cut by the Reserve Bank in August.
“It’s likely that the dial has shifted in favour of keeping interest rates at the current level, but remember 4.3 per cent inflation rate is a lower number – it’s not a low number,” Mr McGauran told Sky News Australia.
“I think … it foreshadows reductions in the second half of the year.”
( SkyNews )
