According to ChainCatcher, AMP Capital deputy chief economist Diana Mousina said that the Reserve Bank of Australia does not have to follow the Federal Reserve in cutting interest rates.
Mousina said there had been times when central banks moved in opposite directions, such as after the global financial crisis when the RBA raised rates while the Fed held them steady, or in 2015 when the Fed raised rates and the RBA stood still. She added that central banks must tailor policy to domestic conditions. AMP expects the RBA to start cutting rates in February 2025, when inflation data will slow further, giving the RBA the confidence to ease monetary policy. (Jinshi)
