Trump, falling property prices and a stubborn RBA: will rate cuts ever materialise?
Borrowers and the Federal Government alike are desperately hoping for interest rate relief but the prospects of a cut any time soon have seemingly been sunk.
A showdown between the US and China is just one of the variables that has thrown expectations of an early 2025 rate cut into serious doubt. (Image source: Shutterstock.com)
Having waited four years for an interest rate cut — and countless failed predictions the next cut is just around the corner — Australia’s mortgage holders may have to wait even longer after Donald Trump’s US election victory.
Money markets have now “fully priced in” September next year for the next official cut in rates, back from May, with hefty tariffs and major tax cuts promised by Trump expected to put upward pressure on global inflation.
…
