Interest rates may need to stay higher for longer to tame stubborn inflation, according to the OECD, as financial markets push out expectations for rate cuts to between May and June 2025, potentially after the next federal election.
Woolworths boss Brad Banducci struck a more downbeat tone, reflecting the checkout pressure plaguing households over the past 18 months. He said he did not expect input cost deflation in the next 12 months and conditions would remain challenging for buyers. The report noted that while there had been some loosening in the labour market, costs remained above recent averages, which translates into higher inflation in labour-intensive areas such as services.
“In our view the language in the prepared statement is well-set, in being sufficiently vague that it could suit a number of potential paths for the economy,” said Ben Jarman, JPMorgan’s chief economist in Australia. “That’s why we call it the ‘lucky country’ and that’s why it doesn’t feel so good for many people right now, people aren’t enjoying it because we’re just not used to these levels of growth,” he said.
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Source: FinancialReview - 🏆 2. / 90 Read more »