Institution: The Reserve Bank of Australia does not need to rush to follow the Federal Reserve's lead

ChainCatcher news, AMP Capital Deputy Chief Economist Diana Mousina stated that the Reserve Bank of Australia does not have to follow the Federal Reserve in cutting interest rates.

Mousina mentioned that there have been periods when central banks acted in opposite directions, such as after the global financial crisis when the Reserve Bank of Australia raised rates while the Federal Reserve kept rates stable; or in 2015 when the Federal Reserve raised rates while the Reserve Bank of Australia held steady. She added that central banks must formulate policies based on domestic conditions. AMP expects the Reserve Bank of Australia to begin cutting rates in February 2025, when inflation data is expected to further slow, which will give the Reserve Bank of Australia confidence to ease monetary policy. (Jin Shi)