Markets Expect Three More RBA Rate Cuts by Mid-2026

The Reserve Bank of Australia (RBA) recently cut interest rates for the first time since 2020, citing a strong labor market but facing criticism for ignoring the impact of immigration on wage growth. Analysts argue that ongoing mass immigration dilutes wage growth despite low unemployment. In the U.S., Treasury yields have risen as investors react to fluctuating inflation data, with Federal Reserve officials indicating a cautious approach to rate cuts, expecting easing policies in late 2025. Meanwhile, Australian markets are optimistic, anticipating three additional rate cuts by mid-2026 as the RBA continues to navigate economic pressures. As the global financial landscape evolves, analysts suggest that macroeconomic drivers for lower rates are diminishing, emphasizing the complexity of monetary policy adjustments. Stock futures in the U.S. rose, reflecting investor interest in forthcoming Federal Reserve policy insights and the potential impact of tariffs on economic conditions.