After a period of aggressive rate hikes, the RBA’s monetary policy is now at a turning point. The cash rate remains at 4.35%, which has held steady since late 2023. However, with inflation showing signs of moderation, many economists anticipate rate cuts in 2025.
What This Means for Borrowers
- Interest rates are unlikely to fall as quickly as they rose, so expectations should be measured.
- A rate cut could bring renewed opportunities for homeowners and first-time buyers.
- Currently, the average variable home loan rate is 6.71%, while fixed rates range from 6.00% to 6.25%, depending on the term.
RBA’s New Meeting Schedule
- The RBA has reduced the number of meetings from eleven to eight per year.
- This means fewer updates but potentially more significant policy shifts when they occur.
- The following announcement will be closely watched to see if the RBA signals the start of an easing cycle.
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