Part 5/9:
Dono notes that the RBA is now slightly behind the curve, as more signs of economic slowdown emerge. While the bank will closely watch upcoming inflation data, especially the quarterly Consumer Price Index (CPI) release in a few weeks, many experts believe that easing monetary policy will be necessary soon.
He highlights that a rate cut could stimulate business investment and bolster employment, particularly if the economy continues to weaken. Dono projects a possible sequence of three rate cuts by the end of the year, potentially bringing the cash rate to around 3.1%. This easing could help reignite growth and foster more investment in infrastructure and business expansion.