Mon Sep 23 21:47:47 UTC 2024: ## Interest Rate Relief Unlikely Before Christmas, Despite Pressure on RBA

**Canberra** – Australians are unlikely to receive interest rate relief before Christmas, despite mounting pressure on the Reserve Bank of Australia (RBA) to act. The central bank will meet on Tuesday to decide on the cash rate, with experts largely expecting it to remain at 4.35 per cent.

The RBA has come under increasing pressure to bring forward its plans for rate cuts, particularly following the US Federal Reserve’s half-percentage point cut. However, independent economist Saul Eslake predicts a rate cut in February 2025, unless data shows a significant drop in inflation.

Eslake pointed out that while headline inflation is expected to fall due to government rebates, the underlying rate is likely to remain near 3.5 per cent, far above the RBA’s target. This suggests that a rate cut before next year is unlikely.

While some, like Graham Cooke, head of consumer research at Finder, believe a November cut is possible, the majority of experts remain skeptical.

Treasurer Jim Chalmers has criticized the RBA for its impact on the economy, hoping for rate relief before the 2025 election. Prime Minister Anthony Albanese, however, reaffirmed the RBA’s independence, reiterating the government’s commitment to planned reforms aimed at strengthening the bank’s autonomy.

The government is taking steps to combat inflation, hoping to create an environment for the RBA to consider a rate cut in the future.

With the monthly consumer price index due to be released on Wednesday, the RBA’s decision on Tuesday will provide further insight into the future of interest rates in Australia.

Read More