What will happen with interest rates?

The million dollar question that every economist tries to predict before every meeting of the RBA.

As reported by realestate.com on 25 September 2024, headline inflation has fallen to its lowest left since August 2021 and is within the RBA’s target range.

The RBA at its last meeting chose to hold interest rates steady at 4.35%.

Core inflation which is generally preferred by the RBA as a more accurate measure is still outside the target at 3.4%. 

Ms Bullock the RBA governor states that persistent high inflaction is the catalyst denying Australians much-desired rate relief.  Ms Bullock also said inflation was still too sticky for the bank to consider rate cuts and warmed that the economy is unlikely to return to normal until 2026.

Reading  between the lines, does this mean that we will not see a rate cut until 2026.  What is going to happen in 2025?

Will there be a change of government at the State and Federal level and will this have any effect on the economy.

There seems to be more questions than answers.

Back to the crystal ball or tea leaves I guess!