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2025-11-07 08:55:25
Westpac predicts two more rate cuts from the Reserve Bank of Australia (RBA) next year, albeit at a slower pace. Westpac's chief economist, Lucie Ellis, recently stated that while the RBA is currently maintaining a wait-and-see stance, she expects the central bank to implement two 25-basis-point rate cuts in May and August 2025. Ellis, who previously served as head of the RBA's forecasting department, pointed out that the central bank has the ability to assess inflation trends while maintaining current interest rates without posing a significant risk to economic activity. This forecast suggests that although the market anticipates rate cuts, the central bank may adopt a more gradual easing pace. Ellis remains optimistic that the central bank will eventually implement further easing policies, but emphasizes that this process will depend on the evolution of inflation data in the coming quarters.
