Why we won’t see an RBA rate cut this year

Speaking after the release of the Australian Bureau of Statistics latest quarterly figures, Ms Bullock reiterated that the central bank’s “highest priority has been and remains to bring inflation down”, warning current levels are “distorting the economy”.

“If economic conditions don’t evolve as expected, the board will respond accordingly,” Ms Bullock said.

“Circumstances may change, of course, but if the economy evolves broadly as anticipated, the board does not expect that it will be in a position to cut rates in the near term.”

Ms Bullock’s comments have poured cold water on hopeful talks of a rate cut in November, meaning property owners and renters alike will continue to feel costs bite well into 2025.

“The board is trying to bring inflation back to target in a reasonable timeframe while preserving as many of the gains in the labour market that we have seen in the past few years as possible,” Ms Bullock said.

“High inflation hurts everyone. This is why it is imperative that we return inflation to levels that mean it is in the background again.”