Gareth Aird, the chief economist of $CommBank (CBA.AU)$, maintains his view that the Reserve Bank of Australia will make substantial rate cuts in 2024 and 2025 to prevent the unemployment rate from reaching 5%.
Aird predicts a 75 basis point reduction in 2024 and another 75 basis point reduction in 2025, which would bring the cash rate to 2.85% by June 2025.
While other economists are not as certain and believe that the Reserve Bank will keep rates unchanged this year. Commonwealth Bank stated that the national accounts and growth rates released on Wednesday were slightly weaker than the RBA's expectations.