December inflation figures set to make or break February rate cut, with government watching on
1 month, 3 weeks ago

December inflation figures set to make or break February rate cut, with government watching on

ABC  

The new inflation figures published on Wednesday may be decisive for the Reserve Bank as it weighs a February interest rate cut. Good news expected on inflation The Reserve Bank's preferred "underlying" measure of inflation was 3.5 per cent in the September quarter, and it forecasts a slight decline to 3.4 per cent in December. Taylor Nugent, a senior economist at NAB, said the cost of building new homes likely fell in the December quarter, a "hugely important" development which wiped 0.15 percentage points off NAB's inflation forecast. "If construction costs were still rising at the rate we inherited from the Liberals, inflation would be well outside the RBA's target band," he said. Mr Oliver said if December inflation came in slightly less than the Reserve Bank's 3.4 per cent forecast, as AMP expects, it would be "very hard not to cut in February… The softer Australian dollar and still strong jobs market should not be barriers to this".

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History of this topic

DC Edit | Will inflation fall lead to rate cut?
1 week, 5 days ago

DC Edit | Will inflation fall lead to rate cut?

Deccan Chronicle  

Retail inflation declined to 3.75 per cent in February 2025 for the first time in the last six months, owing to a greater-than-expected fall in vegetable prices. In terms of use-based industry classification, capital goods led the pack with 7.8 per cent growth, followed by consumer durable goods, infrastructure, primary goods, and intermediate goods. Consumer non-durable goods, or Fast-Moving Consumer …

Inflation eases to 2.4% in Europe, supporting likely central bank rate cut
3 weeks, 1 day ago

Inflation eases to 2.4% in Europe, supporting likely central bank rate cut

Associated Press  

FRANKFURT, Germany — Inflation in Europe eased to an annual 2.4% in February, supporting the case for another interest rate cut from the European Central Bank - but leaving open how far the central bank will go in lowering borrowing costs for an economy that’s still struggling to show robust growth. The February figure for the 20 countries that use …

UK inflation and interest rates 2025 predictions: What it means for your money
1 month ago

UK inflation and interest rates 2025 predictions: What it means for your money

The Independent  

Hopes of interest rates coming down quickly this year appear to be fading amid rising taxes and economic uncertainty in the UK. Inflation may no longer be at double digits and the cost of living measure even managed to hit the 2 per cent target last year, which prompted interest rate cuts in August and November. He said: “The Bank …

RBA’s Hauser Says Rate Pause Would Have Seen CPI Undershoot
1 month ago

RBA’s Hauser Says Rate Pause Would Have Seen CPI Undershoot

Live Mint  

-- Australia’s central bank assessed that keeping interest rates unchanged this year would have resulted in core inflation going below the 2.5% midpoint of its target, Deputy Governor Andrew Hauser said. As a result, the board is “rigorously” focused on cooling prices and success over inflation is “not a done deal,” said Hauser, who is the first foreign official to …

What inflation surge means for your weekly shop - and why it has killed interest rate cut hopes
1 month ago

What inflation surge means for your weekly shop - and why it has killed interest rate cut hopes

The Independent  

Sign up to our free money newsletter for investment analysis and expert advice to help you build wealth Sign up to our free money email for help building your wealth Sign up to our free money email for help building your wealth SIGN UP I would like to be emailed about offers, events and updates from The Independent. Office for …

UK inflation spikes to a 10-month high, likely to worry the Bank of England
1 month ago

UK inflation spikes to a 10-month high, likely to worry the Bank of England

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Inflation in the U.K. rose …

UK inflation spikes to a 10-month high, likely to worry the Bank of England
1 month ago

UK inflation spikes to a 10-month high, likely to worry the Bank of England

Associated Press  

LONDON — Inflation in the U.K. rose to a 10-month high in January, official figures showed Wednesday, an increase that will likely diminish expectations of rapid interest rate reductions from the Bank of England. The spike, which took inflation further above the bank’s target of 2%, was largely due to increases in airfares, food casts and private school fees in …

Markets scale back US Fed rate cut bets for 2025 amid inflation uncertainty
1 month, 1 week ago

Markets scale back US Fed rate cut bets for 2025 amid inflation uncertainty

Live Mint  

Market expectations of multiple rate cuts from the US Federal Reserve this year have weakened after US consumer prices rose more than expected in January, increasing the likelihood that the central bank will keep interest rates higher for longer. Policymakers are closely watching White House trade policy, with President Donald Trump pushing aggressive tariffs that also could boost prices and …

CBA boss Matt Comyn 'acutely aware' customers expect interest rate cuts to be passed on in full
1 month, 1 week ago

CBA boss Matt Comyn 'acutely aware' customers expect interest rate cuts to be passed on in full

ABC  

There's a lot of coded language in business and finance. Like, when you ask the head of Australia's biggest home lender about whether the Commonwealth Bank will fully pass on a rate cut the Reserve Bank is widely expected to make next Tuesday. Loading When you crunch the numbers, it seems that well over 2 per cent of CBA's mortgage …

Powell says Fed doesn’t need to rush on rate cuts
1 month, 1 week ago

Powell says Fed doesn’t need to rush on rate cuts

Live Mint  

WASHINGTON—Federal Reserve Chair Jerome Powell delivered a simple message to Congress to start two days of testimony on Tuesday: Because the economy is doing well, the Fed can take its time to decide when and whether to lower interest rates. Powell defended last year’s rate cuts as a needed recalibration of its policy stance to account for improvement on inflation …

Will retail inflation cool down further in January? Here's all you need to know
1 month, 2 weeks ago

Will retail inflation cool down further in January? Here's all you need to know

India Today  

The country’s retail inflation is likely to witness a dip in January 2025, bringing relief to consumers, as per economists polled by Reuters. This decline is attributed to slowing food price rises, particularly in cereals, milk, vegetables, pulses, and sugar, as mentioned by the Reserve Bank of India in its January 2025 Bulletin. The RBI mentioned continued reduction in rice …

Inflation soars in January, hampering plans for rate cuts
1 month, 2 weeks ago

Inflation soars in January, hampering plans for rate cuts

Salon  

Inflation in the United States suddenly rose in January, in a turn of events one Federal Reserve Bank president called "sobering." The latest update showed that inflation rose to 3 percent in January — a leap of 0.5% and the fastest monthly increase since August 2023 — after many common household goods soared in price. Austan Goolsbee, president of the …

RBI's rate cut sets stage for further easing of interest rates in near term: India Inc
1 month, 2 weeks ago

RBI's rate cut sets stage for further easing of interest rates in near term: India Inc

The Hindu  

India Inc. welcomed the Reserve Bank of India’s move to slash the benchmark interest rate for the first time in nearly five years on Friday and asserted that it will complement the consumption-boosting measures announced in the last week’s Budget, providing much-needed support to the economy. Industry bodies were of the view that the Reserve Bank's 25 basis points rate …

Jim Chalmers gloats the worst of the cost-of-living crisis is over... but these bleak figures reveal why millions of Aussies are still not celebrating
1 month, 3 weeks ago

Jim Chalmers gloats the worst of the cost-of-living crisis is over... but these bleak figures reveal why millions of Aussies are still not celebrating

Daily Mail  

Treasurer Jim Chalmers says the worst of the inflation crisis is over, despite new evidence showing one in two Australians are cutting back on groceries. Among this group of unprepared borrowers, almost half or 48 per cent of them had cut back on spending for essential items, like groceries and power bills despite the federal government's $300 electricity rebates. Treasurer …

Inflation eases as the price of essentials like fuel, pharmaceuticals and electricity fall
1 month, 3 weeks ago

Inflation eases as the price of essentials like fuel, pharmaceuticals and electricity fall

ABC  

The chances of a Reserve Bank interest rate cut in February have improved significantly. Annual core inflation fell from a revised 3.6 per cent in the September quarter, to 3.2 per cent in the December quarter. Annual healthcare inflation has dropped from 4.8 per cent to 4 per cent — indeed, there was deflation in the health category in the …

Fed leaves rates unchanged, sees no hurry to cut again
Trending News
1 month, 3 weeks ago

Fed leaves rates unchanged, sees no hurry to cut again

Live Mint  

* US central bank leaves policy rate in 4.25%-4.50% range * Officials still waiting for clarity on Trump policies * 'We do not need to be in a hurry,' Powell says By Howard Schneider, Michael S. Derby WASHINGTON, Jan 29 - The U.S. central bank held interest rates steady on Wednesday and Federal Reserve Chair Jerome Powell said there would …

Fed hold rates steady, sees inflation as ‘elevated,’ as Powell declines comment on Trump
1 month, 3 weeks ago

Fed hold rates steady, sees inflation as ‘elevated,’ as Powell declines comment on Trump

Associated Press  

WASHINGTON — The Federal Reserve left its benchmark interest rate unchanged Wednesday after cutting it three times in a row last year, a sign of a more cautious approach as the Fed seeks to gauge where inflation is headed and what policies President Donald Trump may pursue. In a statement, the Fed said the job market is “solid,” and noted …

Inflation fall sparks hopes for a rate cut
1 month, 3 weeks ago

Inflation fall sparks hopes for a rate cut

ABC  

Welcome to The World Today. Andy Park: So the question that really matters is how will the Reserve Bank likely view these figures ahead of next month's interest rates decision? Andy Park: Two of Victoria's national parks remain closed as fire crews continue to bring several large bushfires under control in Victoria's west. Kathleen O'Connor: Fire crews have spent the …

Rate cut chances increase after inflation slows in final quarter of 2024
1 month, 3 weeks ago

Rate cut chances increase after inflation slows in final quarter of 2024

ABC  

The odds of an interest rate cut next month have increased, with official figures showing the Reserve Bank of Australia's preferred measure of inflation fell to 3.2 per cent over the year to December. The more volatile headline inflation figure came in at 0.2 per cent for the December quarter and 2.4 per cent for the year, down from a …

Will there be a February rate cut? Macro-economics says unemployment is key
1 month, 3 weeks ago

Will there be a February rate cut? Macro-economics says unemployment is key

ABC  

At 11:30am on Wednesday this week, the December quarter inflation rate will be announced by the ABS, with the nation's economists, bankers and mortgagees clustered, agog, around their screens. In the past 50 years, the RBA has only ever cut interest rates twice while unemployment declined — during the Asian crisis and US tech boom in the late 1990s, which …

Market continues to bet on February interest rate cut despite December jobs surge
2 months, 1 week ago

Market continues to bet on February interest rate cut despite December jobs surge

ABC  

Australia's unemployment rate has risen to 4 per cent, but only because more people are looking for work. Loading Although some economists say the combination of a strong jobs market with falling wages growth should cause the Reserve Bank to question its assumption about the level of "full employment" that is compatible with containing inflation in its 2-3 per cent …

Unexpected respite for Starmer as UK inflation slows against predictions by economists
Trending News
2 months, 1 week ago

Unexpected respite for Starmer as UK inflation slows against predictions by economists

Firstpost  

The annual rate of inflation edged down to 2.5% in December from 2.6% in November, the Office for National Statistics said British inflation slowed unexpectedly last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by finance minister Rachel Reeves after a market …

US inflation likely remained sticky-high last month, threatening interest rate cuts
2 months, 1 week ago

US inflation likely remained sticky-high last month, threatening interest rate cuts

Hindustan Times  

US inflation probably worsened last month on the back of higher prices for gas, eggs, and used cars, a trend that could make it less likely that the Federal Reserve will cut its key interest rate much this year. Last Friday's unexpectedly strong jobs report caused stock and bond prices to plunge on fears that a healthy economy could keep …

US inflation picked up in December but underlying price pressures eased
2 months, 1 week ago

US inflation picked up in December but underlying price pressures eased

Associated Press  

WASHINGTON — U.S. inflation accelerated last month as prices for gas, eggs, and used cars rose, yet underlying price pressures also showed signs of easing, bolstering hopes that the Federal Reserve could still cut its key interest rate this year. “If the trends continue, the Fed might still end up cutting at some point.” Some likely one-time price spikes pushed …

December inflation set to stay at 2.6% in ‘reprieve’ for UK economy
2 months, 1 week ago

December inflation set to stay at 2.6% in ‘reprieve’ for UK economy

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy UK inflation is set to …

Dec inflation: Some analysts see rate cut from Feb, others yet another pause
2 months, 1 week ago

Dec inflation: Some analysts see rate cut from Feb, others yet another pause

New Indian Express  

Watchers of the Reserve Bank are divided over the impact of falling inflation on the potential for a rate cut next month. Two of them forecast another pause in policy rate cuts, arguing that prices remain stubbornly above the central bank’s comfort level, with inflation at 5.2 percent in December. While Aditi Nayar, the chief economist at Icra Ratings, and …

Wall Street recoils after good news on the economy raises inflation worries
2 months, 2 weeks ago

Wall Street recoils after good news on the economy raises inflation worries

LA Times  

The New York Stock Exchange is shown in New York’s Financial District on Dec. 31, 2024. U.S. stocks fell Friday on worries that good news about the job market may be too good and prove to be bad for Wall Street by keeping inflation and interest rates high. Stocks took their cue from the bond market, where yields leaped to …

Federal Reserve officials at December meeting expected slower pace of rate cuts ahead
2 months, 2 weeks ago

Federal Reserve officials at December meeting expected slower pace of rate cuts ahead

The Hindu  

Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes. The minutes also showed that “almost all” Fed policymakers see a greater risk than before that inflation could stay higher than they …

A February interest rate cut is a real possibility, but there's at least one hurdle to clear
2 months, 2 weeks ago

A February interest rate cut is a real possibility, but there's at least one hurdle to clear

ABC  

At 11:31am AEDT on Wednesday, the Australian dollar began falling against the greenback. Inflation drop raises rate cut odds Photo shows A coloured graphic showing a petrol pump, coins, keys and a bag of fresh groceries against a backdrop of receipts A fall in the Reserve Bank's preferred measure of inflation has increased the odds of an interest rate cut …

Federal Reserve officials at December meeting expected slower pace of rate cuts ahead
Trending News
2 months, 2 weeks ago

Federal Reserve officials at December meeting expected slower pace of rate cuts ahead

Associated Press  

WASHINGTON — Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes. Fed Chair Jerome Powell said at a news conference after the meeting that the decision to reduce rates had been …

Falling core inflation raises odds of RBA trimming interest rates in February
2 months, 2 weeks ago

Falling core inflation raises odds of RBA trimming interest rates in February

ABC  

A fall in the Reserve Bank's preferred measure of consumer price rises has increased the odds of an interest rate cut in February, despite an increase in headline inflation. AMP's deputy chief economist Diana Mousina believes the RBA will probably cut interest rates if the annual core inflation rate in the December quarter numbers, due towards the end of this …

US Fed officials expected slower rate cuts in 2025, say December minutes
2 months, 2 weeks ago

US Fed officials expected slower rate cuts in 2025, say December minutes

Al Jazeera  

Minutes of the December meeting show a division on decision to cut rates and the 0.25 percent cut was a ‘close call’. Trump tariffs The minutes also showed that “almost all” Fed policymakers see a greater risk than before that inflation could stay higher than they expect, in part because inflation has lingered in several recent readings and because of …

Good news millions of Aussies with a mortgage have been waiting to hear for years
2 months, 2 weeks ago

Good news millions of Aussies with a mortgage have been waiting to hear for years

Daily Mail  

Economic analysts and bank bosses have forecast an interest rate cut in the next three months, in welcome news for those struggling with mortgage repayments. Westpac chief economist Luci Ellis told Daily Mail Australia on Tuesday that the Reserve Bank could cut rates soon. Economic analysts and bank bosses have revealed an interest rate cut is on the horizon in …

RBA chief's major hint that there could soon be some VERY good news ahead for home-owners
3 months ago

RBA chief's major hint that there could soon be some VERY good news ahead for home-owners

Daily Mail  

The Reserve Bank has given a strong hint borrowers are getting some interest rate cuts in 2025 even though inflation is still too high. The Reserve Bank has given a strong hint interest rate cuts are coming even though inflation is still too high While headline inflation is at a three-year low of 2.8 per cent, the RBA regarded this …

RBA Is More Confident on CPI, But Too Early to Declare Victory
3 months ago

RBA Is More Confident on CPI, But Too Early to Declare Victory

Live Mint  

-- Australia’s central bank is more confident that inflation is moving sustainably toward target but it’s still too soon to conclude the battle is won given a recent pick-up in consumption and a still-tight labor market, minutes of the December meeting showed. The Reserve Bank’s board discussed scenarios in which future policy would be eased to boost economic growth or …

Federal Reserve’s preferred inflation gauge shows price pressures eased last month
3 months ago

Federal Reserve’s preferred inflation gauge shows price pressures eased last month

LA Times  

An inflation gauge that is closely watched by the Federal Reserve barely rose last month in a sign that price pressures cooled after two months of sharp gains. The modest monthly inflation figures in Friday’s report point to one likely reason why the Fed was willing to cut its benchmark interest rate Wednesday: Its preferred inflation gauge, known as the …

MPC votes for CRR cut, expects inflation to ease in Q4
3 months ago

MPC votes for CRR cut, expects inflation to ease in Q4

New Indian Express  

The members of the Reserve Bank of India’s rate-setting panel have shifted their policy stance and voted for a Cash Reserve Ratio cut, anticipating that food inflation, which remains in the low double digits, will ease in the fourth quarter of the current financial year. The Monetary Policy Committee also noted that high prices have contributed to a demand slowdown, …

US Federal Reserve lowers interest rates, signals slower cuts for 2025
Trending News
3 months, 1 week ago

US Federal Reserve lowers interest rates, signals slower cuts for 2025

India TV News  

The Federal Reserve cut its benchmark interest rate by a quarter for the third consecutive time. Future outlook: Moderate reductions expected by 2025 Another quarterly outlook indicated only two rate cuts in 2025, with officials predicting government rates to reach 3.75 per cent-4 per cent by the end of that year. Fed Governor Michelle Bowman warned that inflation would remain …

UK interest rate cut 'unlikely in short term'
3 months, 1 week ago

UK interest rate cut 'unlikely in short term'

China Daily  

A view of the Bank of England and the financial district, in London, Britain, September 23, 2024. Interest rates in the United Kingdom may come down more slowly than expected next year after the latest inflation figures were released, showing that the rate went up for the second month in a row in November, at the fastest pace since March. …

Feds drop interest rates by another quarter-point easing burden for borrowers
Trending News
3 months, 1 week ago

Feds drop interest rates by another quarter-point easing burden for borrowers

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. This year's Fed rate reductions have marked a …

US Federal Reserve lowers rates by a quarter point, signals two cuts for 2025
3 months, 1 week ago

US Federal Reserve lowers rates by a quarter point, signals two cuts for 2025

Hindustan Times  

Federal Reserve officials lowered their benchmark interest rate for a third consecutive time, but reined in the number of cuts they expect in 2025, signaling greater caution over how quickly they can continue reducing borrowing costs. A majority of economists in a Bloomberg survey had expected the median rate estimate would point to three cuts next year. Bumpy Inflation Policymakers …

Inflation analysis: Prices rising faster means higher borrowing costs for longer amid recession fears
3 months, 1 week ago

Inflation analysis: Prices rising faster means higher borrowing costs for longer amid recession fears

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. The faster price gains for consumer goods like food …

What does rising inflation mean for you - and has it killed off a Bank of England interest rate cut?
3 months, 1 week ago

What does rising inflation mean for you - and has it killed off a Bank of England interest rate cut?

Daily Mail  

Inflation in the UK climbed to 2.6 per cent in November, it was revealed today, as the rise in the cost of living accelerated again. James Smith, developed markets economist, UK, at ING, said: 'Our base case is for back-to-back to rate cuts from February onwards, with Bank Rate falling to 3.25 per cent later in the year. While services …

U.K. Inflation rises further above Bank of England's target in November
3 months, 1 week ago

U.K. Inflation rises further above Bank of England's target in November

The Hindu  

Inflation in the U.K. has risen to its highest level since March, driven by an increase in fuel prices last month, official figures showed on Wednesday. Rate-setters had anticipated a pick-up in inflation when the central bank last cut rates in early November as price pressures eased earlier in the year — in September, inflation had fallen to its lowest …

Fed makes third rate cut this year, suggests fewer in 2025
3 months, 1 week ago

Fed makes third rate cut this year, suggests fewer in 2025

Salon  

The Federal Reserve on Wednesday committed to a final interest rate cut this year, as widely expected by economists and investors, but suggested fewer cuts next year. “The slower pace of cuts for next year really reflects both the higher inflation readings we’ve had this year and the expectation inflation will be higher.” Going into the December meeting, market expectations …

Fed lowers interest rates again but pares back plans for more cuts in the future
3 months, 1 week ago

Fed lowers interest rates again but pares back plans for more cuts in the future

LA Times  

Federal Reserve Chairman Jerome Powell has led the central bank’s battle to bring inflation down to 2%, but progress has stalled in recent months. Stocks plunged after the Fed announced its quarter-point rate reduction and updated projections, which halved the number of rate cuts for next year. And one Fed voting member, Beth M. Hammack, president of the Fed Bank …

Surge in wages means beleaguered borrowers must wait for interest rates cut
Trending News
3 months, 1 week ago

Surge in wages means beleaguered borrowers must wait for interest rates cut

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Bank of England is …

RBI May Begin Shallow Rate Cut Cycle From Feb Amid Global Turmoil
3 months, 1 week ago

RBI May Begin Shallow Rate Cut Cycle From Feb Amid Global Turmoil

Deccan Chronicle  

Mumbai: While calls for rate cuts are growing louder with inflation decelerating in November amid concerns over slowing economic growth, economists see a small window of conventional rate cuts next year as global dynamics turn more fluid. Most expect the central bank to begin a shallow rate-cut cycle in its February 2025 policy meeting with a 25 basis points rate …

US Fed to play ‘cut-and-pause’ for meeting dual mandate of growth & inflation; Fewer rate cuts eyed in 2025: Experts
3 months, 1 week ago

US Fed to play ‘cut-and-pause’ for meeting dual mandate of growth & inflation; Fewer rate cuts eyed in 2025: Experts

Live Mint  

The US Federal Reserve will begin its deliberations for the latest monetary policy decisions on Tuesday, December 17, and will announce its new benchmark interest rate decision on December 18. The US central bank will conduct its two-day Federal Open Market Committee meeting amid Wall Street bets that will likely stay on course towards delivering another rate cut even after …

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