ANZ Weekly: RBA remains on course to deliver shallow easing cycle

With its eyes on the May general election, the Australian government has put forward an array of new spending measures in its 2025/26 Budget. However, we don't believe the scope of fiscal expansion is large enough to derail the  disinflationary process currently in motion. In a similar vein, concerns that the recent pickup in public-sector pay hikes will trigger a resurgence in overall wage growth seem overblown. All told, we're sticking to our view that the RBA will cut rates two more times this cycle.