FNArena’s Weekly Insights – February 17 2025
More Beats In Early Feb Results
By Rudi Filapek-Vandyck, Editor
If everything goes to plan, the RBA will deliver its first rate cut since 2020 at Tuesday’s board meeting.
Whether this will be supportive of further share market gains remains to be seen as forward-looking equities have, of course, already responded to the local bond market that has made Tuesday’s rate cut pretty much a done deal.
Meanwhile, in the background of it all, the public debate has shifted from will they/won’t they to how many rate cuts should we expect this year?
The bond market is suggesting at least three and potentially four rate cuts are on the agenda. Plenty of voices around think that’s too optimistic. So what happens if/when the RBA cuts and then signals a la Jerome Powell there’s no hurry to follow up with another one until more clarity emerges about what’s going on in the world generally?
