Some clues from RBA to when rates will be cut

An interesting week with a new format from the RBA. But unfortunately, the same old rhetoric. I can understand that the RBA doesn’t want to celebrate too quickly. Inflation is not back to the target band range yet. But by the same token, it is heading in that direction.

In this week’s video, I look at the statement and point to clues as to when I think the RBA will start cutting. I also use data from the United States and the United Kingdom to show that inflation is coming down rapidly in those markets.

China is also wobbly. I’m a big believer, but I’m also experienced enough to know that where there is smoke, there is usually fire. China isn’t booming as hard as expected, and any delay in the economic recovery there will take further steam out of the Aussie economy.

That means rate cuts can happen sooner.

The residential property market remains very strong so far in 2024 and I believe will continue to be so as supply remains super tight.

Once rate cuts start looking likely, the market will move even stronger into the end of the year. If you haven’t already, I encourage you to subscribe to my newsletter by clicking the link above and also to Youtube to get each video as it drops.

Peter Esho is an economist and Founder of Esho Capital. He has 20 years of experience in investments and markets.