‘More likely’ Reserve Bank will cut rates in ‘very latter half’ of 2024

Independent analyst Evan Lucas believes while June is a “relatively positive view” for the Reserve Bank to cut rates, it is “more likely” they will cut rates in the latter half of the year. The Reserve Bank of Australia will meet next week for their first meeting of 2024 to decide on the official cash rate, which currently sits at 4.35 per cent. “I think June’s a relatively positive view to have the idea the RBA could cut rates then; it’s more likely though that it will be in the very latter half of the second part of this calendar year,” Mr Lucas told Sky News Australia. “I actually don’t think they’ll start until September. “We’ve seen data at the second half of last year was falling and falling rapidly. “I think what’s also slightly missed by yesterday’s inflation number was that the September quarter, which they used as justification for rising in November, was significantly downgraded from 4.3 per cent to 4.8, so that is also something to be aware of.”