RBA monkey to cut in Feb as Aussie inflation freefalls

David Llewellyn-Smith

Saturday 18 January 2025

Aussie inflation is beaten. The RBA should and likely will cut rates in February.

Timely monthly core measures are in free fall.

Headline is even better.

Business surveys are smashed.

Inflation expectations are perfectly anchored.

Wage growth is sagging dangerously into Albo’s Indian inundation.

This has dragged the carpet from under rents and wider services inflation.

A monkey can see the RBA is about to undershoot inflation.

Cut!

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.