Fund managers are tipping this week’s widely expected interest rate cut from the Reserve Bank of Australia will broaden out the sharemarket’s rally to the more rate sensitive sectors including property stocks and retailers.
Financial markets are pricing in an 88 per cent chance of some rate relief on Tuesday when the RBA meets for its first board meeting of 2025, taking the cash rate from to 4.1 per cent from 4.35 per cent. That’s largely because of a favourable quarterly inflation report which showed core inflation inching closer to the central bank’s 2 per cent to 3 per cent target.
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