Westpac: RBA to cut rates before November

On Aug. 1, Westpac’s Chief Economist, Luci Ellis, said that the CPI data for the second quarter released by Australia on Wednesday strongly proves that the price pressure on the entire economy continues to ease. The Reserve Bank of Australia may lower the official cash Intrerest Rate before November. She added that the inflation data suggests that the RBA still has a chance to restore inflation to the target range of 2%-3% by the end of 2025. Ellis further commented that the RBA needs to start cutting interest rates before reaching the target range, otherwise it may result in inflation falling below the target, which is not beneficial to anyone.

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