
Australia’s four major banks predict that the Reserve Bank will cut interest rates in February.
Treasurer Jim Chalmers stated that Australia has made significant progress in controlling inflation.
A rate cut would provide relief to millions of Australians with mortgages and home loans by reducing their monthly repayments.
NAB Bank’s chief economist, Alan Oster, believes there is a strong chance of a gradual rate reduction starting in February.
Lower interest rates could also contribute to a decline in unemployment.
The major banks forecast that the cash rate, currently at 4.35%, could drop to 3.5% by 2025.