RBA Interest Rate Warning Fails to Swear Off Economists Predicting Rate Cut

The Reserve Bank of Australia (RBA) governor Michele Bullock reaffirmed on Tuesday that another interest rate rise is possible, but not all economists agree. The central bank kept the cash rate steady at 4.35 per cent after its two-day board meeting.

Economists from Goldman Sachs and JPMorgan are still betting on a rate cut next year, despite Bullock's warning. They believe that inflationary pressures will ease in the future, leading to lower interest rates.

Financial markets and forecasters are sharply divided over the policy outlook. While some predict a further rate hike, others see a potential for a rate reduction as early as 2027.