CBA predicts two more rate cuts in 2025 following RBA's ‘noticeable shift in tone'
CBA chief economist Luke Yeaman believes there was a 'noticeable shift in tone' from the Reserve Bank of Australia following their meeting last week, which resulted in interest rates being cut.
'The shift in tone was clear, and they've decided that they're much more concerned about the downside risks to inflation now than they were previously, and they've become more confident that some of the upside risks to inflation has faded,' he told Sky News Business Editor Ross Greenwood.
Mr Yeaman claimed Australia now has inflation back within the RBA's target band, but they 'haven't quite declared victory.
'I think Michele Bullock was quite close to that at her press conference this week, and she's said they've now moved into a new phase where their job is to keep inflation in the target band,' he said.
Mr Yeaman predicted that Australians may see two more interest rate cuts over the course of this year.
In partnership with Commonwealth Bank.
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