RBA (Reserve Bank of Australia) reduced their interest rate levels by 25 basis point this morning, down to a total base rate of 4.1%. While the monetary action was expected, comments from its members show a hawkish outlook moving forward in 2025 – with potentially two additional cuts planned to bring down the borrowing costs to 3.6% later in the year.
Governor Michele Bullock indicated a somehow more cautious approach, due to inflation threats still on the radar. To curb inflation levels, its therefor vital for the Australian central bank to take a cautious approach and not act to quickly and see inflation levels start to spike again.
Last week we saw UK economic growth increase slightly – show relief for UK policymakers moving forward. This morning, we have seen average earnings also improve slightly, to a total of 6% - contributing to more disposable income for households.
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