RBA Interest rate hikes are completely off the table. Interest rate cuts will likely occur during the First Half of 2025.
The RBA has provided explicit guidance that it is no longer considering hiking rates . As confirmed at the December press conference in which they stated that it was an intentional decision to remove the phrase ''not ruling anything in or out'' as interest rate hikes weren't even considered at the December meeting and aren't being considered moving forward.
Not a single economist polled by the Financial Review expects the RBA to hike rates from here (not even Warren Hogan who was super hawkish and previously expected 3 more hikes before Christmas 2024).
SWM Management isn't sitting on their hands.We know that each time SWM has been confronted with difficult market conditions it has taken decisive action to cut costs and restructure to ensure strong profitability remains. Not much needs to go right for you to make multi-bagger returns when you're buying SWM at 15 cents a share which equates to less than 3x current earnings .
Our job as investors is to assess probabilities and while we don't know for certain when interest rates will be cut in Australia (hence the expectation that they will be cut sometime in the first Half of 2025) we do know that interest rates won't next be hiked by the RBA.
SWM Price at posting:
14.5¢ Sentiment: Buy Disclosure: Held
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