ANZ Predicts RBA Interest Rate Cut in 2025, Diverging from Peers

ANZ Bank has made a bold prediction, forecasting the Reserve Bank of Australia (RBA) will implement its first interest rate cut in February 2025. This forecast sets ANZ apart from other major banks, which do not anticipate a change to the current cash rate of 4.35% in the RBA’s upcoming meeting.

Meanwhile, the Australian Bureau of Statistics is set to release crucial labor market figures for May, offering insights that will influence the central bank’s decision-making. NAB’s recent business survey paints a picture of subdued economic activity, citing concerns over the inflation outlook and gradual price increases. However, there are bright spots noted in the survey, including improvements in the employment index and resilient car sales figures.

Despite these positive indicators, NAB also highlights a slight rise in financial hardship applications among borrowers struggling with mortgage payments, though levels remain relatively low.

As financial markets await further economic data and the RBA’s next moves, analysts and stakeholders continue to monitor developments closely.