Original article by Jonathan Shapiro
The Australian Financial Review – Page: 25 : 13-Jun-24

Market strategist Gerard Minack says monetary policy in Australia is "very restrictive" at present, noting that official interest rates are still lower than comparable countries. Minack addressed the Morgan Stanley Australia summit on Wednesday, stating that he expects the Reserve Bank to reduce the cash rate later in 2024 or in early 2025. Meanwhile, Morgan Stanley economist Chris Read said the central bank could increase the cash rate if inflation rises again. Market traders have fully priced in the cash rate remaining on hold until the end of 2024, and a rate cut in May 2025.

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MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA