Morgan Stanley: Market attention turns to the Rese

Aihucha News, September 8: Morgan Stanley said in a market report that the Reserve Bank of Australia may finally raise interest rates in November, but the market’s attention will relatively quickly shift from the final interest rate hike to what the central bank will do next. debate on rate cuts. The rapid slowdown in Australia's overall inflation and growing confidence that the unemployment rate is heading towards 4.5% will lay the foundation for an interest rate cut, with the third quarter of 2024 seen as the most likely time for the Reserve Bank of Australia to start cutting interest rates. By then, data will show headline inflation approaching 3.7% year-over-year and the unemployment rate at 4.5%. Both should provide some confidence for the RBA to move towards less restrictive policies. One complicating factor is the third phase of tax cuts due to be implemented in July 2024, which will provide a significant stimulus to the household sector.