Commonwealth Bank CEO Matt Cumin, reiterated the Australian Central Bank (RBA)’s position on the need to cap costs, stressing that inflation remains too high and interest rate cuts should not be expected this year. Despite market forecasts to lower interest rates through November, it argued higher rates have effectively reduced household savings, which is essential to reduce inflation within target range. He stressed that although inflation is easing, its pace is slowing and the impact of higher prices on households is being felt as savings reserves are nearing depleted.
Matt Cumin’s remarks after reporting strong cash profit 9. 8$ billion was offered for the year leading up to June 30, which rewarded shareholders with a record stock profit. However, he noted that despite Australia facing challenges such as productivity and housing affordability, the country remained in a relatively strong position with low unemployment, high investment in business and strong exports.
Source : Financial Review
