Bendigo Bank’s chief economist David Robertson says mortgage-holders could see relief by September if inflation continues to decelerate.
“The deceleration of the CPI to only 0.6% in Q4, together with the December monthly indicator slowing to only 3.4% year-on-year, has added to confidence that the Royal Bank of Australia (RBA) will be cutting rates by spring,” Mr Robertson said.
He warned that if the RBA cuts rates too early, disinflation could make a “U-turn in 2025”, resulting in another season of rate hikes.
“I hope we are fortunate enough the data through 2024 allows the RBA the opportunity to cut rates by September, but we will need more evidence to support that proposition – one CPI read doesn’t make a spring,” he said.
