ANZ Group Holdings Ltd. has adjusted its forecast for the easing cycle in Australia, stating that it will likely start later and be less aggressive than previously predicted.

ANZ now expects the first interest rate cut to take place in May, instead of February, following a speech by the Reserve Bank of Australia (RBA) chief that emphasized the persistence of elevated core inflation.

The bank now predicts a total of two rate reductions, down from the previous expectation of three. This adjustment reflects the RBA's ongoing hawkish stance, as well as positive indicators such as strong job growth, stable business conditions, and improving consumer sentiment.