These articles still support interest rates being cut within the First Half of 2025. None of these articles reference RBA interest rate hikes as even being a remote possibility.
Relevantly the different articles also suggest that • ‘’ In December, the RBA seemed to suggest it was considering a rate cut in February…Hutley notes that the RBA may have already taken the dollar’s increasing weakness into account when it made its comments just before Christmas, and concerns about inflation may be offset by the increased competitiveness of Australian exports.’’
• ‘’While weakened, the Australian dollar remains stronger than the currencies of several of its trading partners, which is expected to give the RBA confidence as it moves forward with monetary policies to return inflation to its target band. The RBA will be predominantly guided by December inflation numbers at its February meeting, rather than global currency movement.’’
• “Inflation is coming from domestic inflation, or services inflation, and that isn’t really influenced by the Aussie going higher or lower,” Sycamore said.
• ‘Oliver said the RBA would be required to “assess the context” in which the dollar was sliding, likening it to the decision to cut interest rates at the start of the pandemic while the dollar fell to record lows.“It’s not clear to me that even in the circumstances of a bigger fall that it would stop the RBA from cutting,” Oliver said.
Interest Rates have already been on hold since November 2023. The facts are that they wont be on hold for much longer and certainly not beyond the First Half of 2025.
SWM Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
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