According to Jinshi Data, Morgan Stanley expects the Reserve Bank of Australia to keep interest rates unchanged until May next year, and predicts that Australia's economic growth will be 2.3% in 2025, higher than market expectations. The market expects the first interest rate cut in February next year.

Morgan Stanley economist Chris Read noted that the Reserve Bank of Australia took a more hawkish stance on inflation, the labor market and demand at this month's policy meeting. As state and federal subsidies take effect in the second half of the year, Read expects the Reserve Bank of Australia's data reliance to shift from inflation to spending and labor market data.

Read also expects fiscal spending measures to support economic recovery in the second half of the year, but government stimulus for household consumption is likely to wane over the next 12 months.