Commonwealth Bank still predicts interest rate cut in 2024 as RBA defends keeping cash rate on hold

Commonwealth Bank has retained its November interest rate cut prediction, saying conditions are ‘finely balanced’. Photograph: Joel Carrett/AAP

One of the big four banks is still predicting an interest rate cut in 2024, as the chief economist from Australia’s central bank defended its decision to keep the cash rate on hold while “people were struggling”.

The Reserve Bank on Tuesday left its cash rate unchanged at 4.35% for a sixth meeting in a row, with its governor, Michele Bullock, warning “a near-term reduction in the cash rate doesn’t align with the board’s current thinking” and that inflation remained too high.