2024 interest rate cuts in doubt as Australia lags other major economies
The prospects of an interest rate cut in 2024 are receding, with the major banks revising their forecasts in the wake of some unexpected inflation figures as other major economies move ahead of Australia in terms of expected cash rate reductions.
While some some emerging market central banks have already begun the process of loosening monetary policy, the chance of Australia doing the same is diminishing. (Image source: Shutterstock.com)
Like the famous meme of Homer Simpson retreating into a hedge, Australia’s major banks are backing away from predictions of multiple interest rate cuts in 2024.
On Tuesday (30 April), Australia’s biggest bank, CBA, revised its cash rate forecast, reducing the number of predicted Reserve Bank of Australia (RBA) cuts in 2024 from three 0.25 percentage point cuts, to just one, scheduled for November.
Last week, Westpac’s economic team also updated t…
