Australia's biggest bank reveals why rate cuts WON'T make life easier
Commonwealth Bank boss Matt Comyn made the call a day after the Reserve Bank of Australia cut interest rates again for the third time in six months - taking the cash rate back to 3.6 per cent for the first time since May 2023.
' Inflation is back within the target band, and what we expect to be a modest rate-cutting cycle is underway,' he said.
'Consumer confidence has improved, but households remain stretched.'
Mr Comyn unveiled a $10.3billion cash profit for 2024-25 a day after the RBA cut rates again and signalled more relief for borrowers.
Reserve Bank Governor Michele Bullock suggested more rate cuts were likely in 2025 and possibly 2026 based on inflation remaining 'sustainably' within its target range.
'The forecasts imply that the cash rate might need to be a bit lower than it is today to keep inflation low and stable and to keep employment growing,' she told reporters in Sydney.
Updated Reserve Bank forecasts, released on Tuesday, had underlying inflation remaining at 2.6 per cent into 2026, or the midpoint of its two to three per cent target.
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