Economists Say Rate Cut Not a Sign That Australia’s High Inflation Has Passed

‘We need less government expenditure in general, and particularly less interference that clouds the economic fundamentals’, UNSW economist Gigi Foster.

People walk through a shopping mall in Sydney, Australia, on Oct. 25, 2024. Susan Mortimer/The Epoch Times

Economists say it is still too early to tell whether the country has pulled through the peak of inflation after the Reserve Bank of Australia decided to cut interest rates for the first time in four years—from 4.35 to 4.10 percent.

Economist Gigi Foster from UNSW expressed cautious optimism, highlighting the risk of an early rate cut means inflation could just rise again later.