Inflation has finally returned to the Reserve Bank of Australia’s target band for the first time since the COVID-19 pandemic, but fund managers warn that lingering price pressures should curb hopes for deeper easing.
Bond traders fully expect the central bank to cut the cash rate by a quarter-point rate to 3.85 per cent when it meets on May 20 after data showed core inflation – the RBA’s preferred measure – cooled to 2.9 per cent in the March quarter from 3.3 per cent, within the 2 per cent to 3 per cent target. Inflation peaked at nearly 7 per cent in 2022.
Source: https://www.afr.com/markets/debt-markets/bond-market-too-optimistic-about-rapid-rate-cuts-investors-warn-20250429-p5lv6r