Markets15 October 20245 min read
October 2024: the US Fed cuts 50bps
Powell delivered a 50bp cut. The Australian dollar weakened. Bond market priced first RBA cut for Q1 2025.
Market response
Aussie property markets initially rallied on the global rate-cycle pivot. Then Q3 Australian CPI re-accelerated and the rally faded. The lesson: domestic data dominates the local rate cycle, not global signals.
Investor framing
The 'rate cuts solve everything' narrative collapsed cleanly through Q4 2024. Disciplined investors continued to underwrite acquisitions at 6.0%+ mortgage rates with rate cuts as upside rather than baseline.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.