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flag Australia’s central bank likely won’t cut rates again due to strong growth, low unemployment, and lasting higher interest rates driven by global trends.

flag Australia’s central bank is unlikely to return to ultra-low interest rates, as a strong economy with 4.3% unemployment and rising inflation pressures limit further rate cuts. flag Global trends—including increased investment in green energy, defense, and on-shoring, along with aging populations and higher debt—are pushing up the neutral interest rate. flag These long-term shifts suggest future rates will remain higher than in past cycles, meaning borrowers should expect elevated borrowing costs for the foreseeable future unless a major economic crisis occurs.

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