Slowing Inflation in Australia Fuels Hopes of Early Interest Rate Cut

One economist predicts falling inflation may prompt the RBA to cut rates in February, as the annual rate nears its 3.4 percent forecast.

A billboard advertises a new home for sale in Melbourne, Australia, on Sept. 6, 2022. William West/AFP via Getty Images

The 2025 New Year might bring relief for Australian mortgage holders, with economists predicting an earlier-than-expected interest rate cut.

This follows the Australian Bureau of Statistics (ABS) latest data, released on Jan. 8, showing a decline in the annual “underlying” inflation rate, which excludes short-term volatile items, from 3.5 percent in October to 3.2 percent in November.