Goldman Sachs: Australia's economic recovery faces obstacles, and calls for interest rate cuts in July are growing.

Gate News bot message, Goldman Sachs economist Andrew Boak stated that the momentum recovery of the Australian economy, which was originally expected by the end of 2024, seems to have stalled in the first quarter of 2025, posing downside risks to the Reserve Bank of Australia’s forecast of a “consumption-driven recovery.”

Looking ahead, against the backdrop of government spending cuts, the Reserve Bank of Australia may need to initiate a significant easing cycle to drive sustainable growth in private demand. Given the current situation, it is well justified for the Reserve Bank of Australia to lower the official interest rate by 25 basis points at the next policy meeting in July.

Source: Jinshi

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