Rate cuts ‘more likely’ in December or early 2025: Peter McGauran

Bondi Partners Senior Advisor Peter McGauran says he is “not certain” of a rate in September and thinks it will “more likely be December” or in early 2025. “I’m not so certain [of a rate cut] – there’s two speedbumps in the road,” Mr McGauran told Sky News Australia. “The first is wages growth. Now, the government is funding aged care workers and childcare workers; they’re supporting an increase to the minimum wage, which is fair enough to a point. “We’re seeing a drop in spending except for petrol, electricity and rent, which is beyond people’s control. “The other speedbump is going to be the effect of the tax cuts. They will start from the 1st of July, and there are some economists who are saying that that represents a reduction equivalent of interest rates. “There’s a hope that it will be September; I think it will more likely be December or early next year.”