When To Expect a Rate Cut in 2025

Good morning, it’s Amy in Melbourne with your Tuesday newsletter. We’ve woken to news Canadian Prime Minister Justin Trudeau will resign. First, a roundup of local news.

Today’s must-reads:
• When the Reserve Bank could cut rates
• Beer and liquor stocks in Asia and Australia fall
• Insignia’s latest suitor is CC Capital Partners

While almost all major economies — including Australia — should see monetary easing during the coming year, the pace is likely to slow. Bloomberg Economics projects its aggregate measure of advanced-world interest rates to drop just 72 basis points in 2025, less than it did in 2024. The New Year will likely mark the start of the RBA’s long-awaited easing cycle, possibly as early as February.

Many of us use January for a health kick, and now there’s another reason to consider your tipple. Asian and Australian alcoholic beverage stocks slid after the US Surgeon General outlined a link between drinking alcohol and the risk of cancer. Treasury Wine Estates dipped 2.7% here, while Budweiser Brewing Company APAC slid 2.6% in Hong Kong.