SYDNEY (Reuters) – The CEO of Australia’s biggest bank said on Tuesday the country’s easing cycle would be “slower and shallower” than what people had been expecting, predicting that further rate cuts would not arrive until later in the year.
The Reserve Bank of Australia cut the cash rate for the first time since November 2020 by a quarter-point to 4.1% last month.
Commonwealth Bank CEO Matt Comyn said Australia was “clearly not out of the woods” when it came to inflation and further rate cuts would “hinge on [economic] data points”.
“But I wouldn’t be surprised if rate cuts are not coming until later in the year,” he said at the Australian Financial Review Business Summit in Sydney.
“I suspect it will be a slower and shallower easing cycle than perhaps is forecast.”
(Reporting by Christine Chen and Byron Kaye in Sydney; Editing by Muralikumar Anantharaman)
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