Home Australia Positive sign Aussies have been waiting for as hopes rise for interest rate cut

Positive sign Aussies have been waiting for as hopes rise for interest rate cut

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Australian borrowers can now wait a tariff cutting as soon as next month with inflation now at the lowest level in almost four years (in the photo it is the reservation bank building in Sydney)
  • The main inflation falls to 2.4 percent, better since the beginning of 2021

Australian borrowers can now expect a tariff cut as soon as next month with inflation at the lowest level in almost four years.

The main inflation fell to 2.4 percent in the quarter of December, marking the best data of the consumer price index since the beginning of 2021.

The underlying inflation, also known as the average trimmed, decreased to 3.2 percent during the same period, which only puts it marginally above the target of the reserve bank from 2 to 3 percent.

The Senior Senior Senior Operator Asia Pacific, Junvum Kim, said that now a February rate cut was likely.

“These softer inflation data than expected could amplify expectations for a February RBA rate cut and strengthen the reservation bank confidence in direction inflation to its objective within a reasonable time,” he said.

The Bank of the Commonwealth is waiting for a February rate cut, but the other four great banks still predicted a May decrease, when a choice is due.

The reserve bank focuses on this underlying annual number that eliminates volatile items such as gasoline and fruit, instead of the CPI that includes unique factors such as electricity reimbursements of the federal government of $ 300.

The cheapest gasoline at the end of last year saw that transport costs fell 1.5 percent in 2024.

Australian borrowers can now wait a tariff cutting as soon as next month with inflation now at the lowest level in almost four years (in the photo it is the reservation bank building in Sydney)

But school rates are now the largest drainage for family budgets with education costs that rise by 6.5 percent.

The official data were taken before the Australian dollar in January sank 61 cents for the first time since March 2020 during the start of COVID.

A weaker currency makes imports more expensive, which could delay a possible cut of interest rates.

But the latest data were better than economists had been predicting.

This means that the reserve bank could reduce the cash rate from an existing level of 4.35 percent when it meets again on February 17 and 18.

This would mark the first rate cut since the late 2020 during the Covid pandemic.

(Tagstotranslate) Dailymail (T) News

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