Goldman Sachs: Australia's economic recovery faces obstacles, and calls for interest rate cuts in July are growing.

Jin10 data reported on June 4th that Goldman Sachs economist Andrew Boak stated that the momentum of the Australian economy, which was originally expected to recover by the end of 2024, seems to have encountered stagnation in the first quarter of 2025, bringing downside risks to the Reserve Bank of Australia's forecast of a "recovery driven by consumption." Looking ahead, against the backdrop of government spending cuts, to promote sustainable growth in private demand, the Reserve Bank of Australia may need to initiate a significant easing cycle. Given the current situation, there is ample reason for the Reserve Bank of Australia to lower the official interest rate by 25 basis points at the next policy meeting in July.