Bank of America predicts no rate cut from the Reserve Bank of Australia until 2025

<p>Bank of America are forecasting no rate cut from the Reserve Bank of Australia until 2025.</p><p>BoA's assessment says rates have peaked or have nearly down so, citing:</p><ul><li>economy slowing, GDP barely positive in Q3 2023</li><li>unemployment rising, hit an 18 month high in November </li><li>households are trimming back on spending</li><li>supply of labour is beginning to rise more rapidly than employment growth, this will place downward pressure on wages</li><li>sticky inflation will prompt the RBA to hold borrowing costs high</li><li>“Australia will have an elongated flat cycle, still in expansion but below trend” </li><li> and absent a "significant shock, the economy doesn’t tend to go into recession” </li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.