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.
