{"id":100823,"date":"2025-01-30T12:00:00","date_gmt":"2025-01-30T01:00:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=100823"},"modified":"2025-01-30T11:42:45","modified_gmt":"2025-01-30T00:42:45","slug":"100823-2","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/100823-2\/","title":{"rendered":"\u2018It\u2019s On\u2019: Three Major Banks Now Expect Major RBA Rate Cut In February"},"content":{"rendered":"\n

Australia\u2019s inflation rate<\/strong> has fallen more than expected, prompting three of the big four banks<\/strong> to revise their forecasts and predict the Reserve Bank of Australia (RBA)<\/strong> will cut interest rates in February. Westpac<\/strong> is the latest to bring forward its expectations following the release of the latest Consumer Price Index (CPI)<\/strong> data.<\/p>\n\n\n\n

Inflation Slows, Increasing Likelihood of a Rate Cut<\/h2>\n\n\n\n

The Australian Bureau of Statistics (ABS)<\/strong> reported that annual inflation slowed to 2.4%<\/strong>, with a quarterly rise of just 0.2%<\/strong> in December. Underlying inflation, a key metric closely watched by the RBA, fell to 3.2% annually<\/strong>, its lowest level in three years.<\/p>\n\n\n\n

The data has reinforced expectations that the RBA may begin easing monetary policy sooner than previously anticipated<\/strong>. Westpac\u2019s<\/strong> chief economist Luci Ellis<\/strong>, a former RBA assistant governor, stated that the figures provide the necessary confidence<\/strong> for the central bank to begin a rate-cutting cycle<\/strong> in February.<\/p>\n\n\n\n

\u201cNormally it should not come down to one number,\u201d Ellis said. \u201cThis round, however, the CPI has been the deciding factor because the message from other available data has been so mixed.\u201d<\/p>\n\n\n\n

Three Banks Now Predict a February Rate Cut<\/h2>\n\n\n\n

Commonwealth Bank (CBA), ANZ, and Westpac<\/strong> now expect the RBA to lower interest rates in February.<\/p>\n\n\n\n