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Schroders: Reserve Bank of Australia’s three rate hikes have had a significant effect, interest rate cuts may come earlier than expected

Schroders: Reserve Bank of Australia’s three rate hikes have had a significant effect, interest rate cuts may come earlier than expected

汇通财经汇通财经2026/06/16 07:54
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(1) Kellie Wood, Head of Fixed Income at Schroders Australia's subsidiary, stated that the three previous rate hikes by the Reserve Bank of Australia have had a significant effect, sufficient to trigger an interest rate cut earlier than most people expect. (2) The policy committee can see that the tightening policy is working, and pausing rate hikes in August to allow policy effects to be transmitted to the overall economy is the logical next step. The three rate hikes have exerted enough restraint, and the negative wealth effect is beginning to show. (3) If household spending continues to decline naturally, inflation will fall without the need for further interest rate increases. However, the risk is that this effect may be excessive, leading the slowdown in consumption to turn into a more severe downturn. Therefore, the next step for the Reserve Bank of Australia will be to cut interest rates, and it may happen earlier than most people expect.
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