Part 6/8:
Changing gears, the discussion shifts to monetary policy, particularly the likelihood of upcoming interest rate cuts by the RBA. Economists widely anticipate at least one rate reduction during the year's remaining months, though there is debate about how many cuts might occur and the timing.
Phillips notes that the RBA appears to be moderating its approach—"cooling their jets"—after previous signals of more aggressive rate cuts that did not materialize. Despite this, inflation statistics provide some room for easing monetary policy. Currently, inflation remains relatively low, making room for the RBA to lower interest rates to stimulate economic activity.