Data aligns for OCR cut and inflation easing
While there might well be a cut, Westpac says it will probably be the bottom of the easing cycle and after that is less clear.
The Australian-owned bank says inflation will remain elevated through the next six months, but with spare capacity in the economy, there is a reasonable expectation that it will ease in next year.
Economic growth will trend higher later this year as the full effects of interest rate reductions ripple through the economy.
However, conditions are likely to remain uneven across the country. Stronger export returns mean that rural regions, especially those with large dairying sectors, are seeing strong growth in incomes and spending. Urban regions will be slower to improve.
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