According to ChainCatcher, Diana Mousina, deputy chief economist at AMP Capital, said the RBA does not have to follow the Fed in cutting interest rates.

Mousina said there was a time when central banks acted in opposite directions, such as after the global financial crisis, when the RBA raised interest rates while the Fed kept interest rates stable; or in 2015 when the Fed raised interest rates and the RBA stood still. She added that central banks in all countries must formulate policies based on domestic conditions. AMP expects the RBA to start cutting interest rates in February 2025, when inflation data will slow further, which will give the RBA the confidence to ease monetary policy. (Jinshi)