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MNI: RBA Rate On Track For Cuts, Trump Adds To Risk-Ex Staff

Former RBA staffers share their cash rate outlook amid Donald Trump's election win.

MNI (SYDNEY) - The Reserve Bank of Australia is likely still on track for an April or May 2025 cut, but inflation risks are to the upside and there is at least an outside risk it could still be forced to hike again given an outlook made more uncertain by the victory of Donald Trump in U.S. elections, former RBA staffers told MNI.

The RBA’s strategy of trying to preserve employment while simultaneously containing inflation has left it exposed to positive inflation shocks, said Mariano Kulish, University of Sydney professor and a former RBA senior manager, who has previously criticized the RBA for not hiking more aggressively.  

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MNI (SYDNEY) - The Reserve Bank of Australia is likely still on track for an April or May 2025 cut, but inflation risks are to the upside and there is at least an outside risk it could still be forced to hike again given an outlook made more uncertain by the victory of Donald Trump in U.S. elections, former RBA staffers told MNI.

The RBA’s strategy of trying to preserve employment while simultaneously containing inflation has left it exposed to positive inflation shocks, said Mariano Kulish, University of Sydney professor and a former RBA senior manager, who has previously criticized the RBA for not hiking more aggressively.  

Keep reading...Show less