"There will be a period of uncertainty and adjustment"
Australians hoping for a significant interest rate cut may need to dial down their expectations, with Reserve Bank of Australia (RBA) Governor Michele Bullock warning that it’s still too early to say where rates are headed.
Speaking on Wednesday, Bullock confirmed that the RBA is taking a cautious approach as it monitors a range of domestic and international factors, including growing uncertainty around the global economy.
“Inevitably, there will be a period of uncertainty and adjustment,” Bullock said, referencing recent developments such as trade tensions sparked by new tariffs in the United States and China’s response.
Her comments follow increasing speculation over when the RBA might next move on interest rates as Australian households continue to face cost-of-living pressures. The central bank has kept the official cash rate steady at 4.1% since February, after its first rate cut in over a year.
While some economists have forecast further easing later in 2025, Bullock indicated that patience would be required.
The RBA is set to hold its next monetary policy meeting in May.
