RBA to cut rates in May, August and November, says Westpac chief economist | The Business | ABC NEWS
All of the big four banks are forecasting an interest rate cut from the Reserve Bank on Tuesday but the banks’ economics teams views vary on when the next cut in the easing cycle will come. Westpac chief economist Luci Ellis is forecasting a cut in May, and pencilling in two further cuts in August and November 2025. Luci Ellis says while she does expect rate cuts will put upward pressure on house prices, population growth is slowing and the population pressure on rents and house prices has begun to unwind. She also addressed the Productivity Commission’s decision to open consultation on 15 priority areas of productivity reform, including the company tax rate. On this point – Dr Ellis says tax isn’t the area of reform she would start with because businesses are motivated to make their operations more efficient regardless of the tax rate.
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