When will interest rates go down? Banks are preparing for the RBA's cash rate decision
1 month, 2 weeks ago

When will interest rates go down? Banks are preparing for the RBA's cash rate decision

ABC  

The Reserve Bank of Australia is meeting and banks are forecasting an imminent cash rate cut. The cash rate target is set by the RBA and influences how much commercial banks charge customers for borrowing money — it's currently at 4.35 per cent. All of the big four banks — ANZ, Commonwealth Bank, NAB and Westpac — reckon the RBA will cut its cash rate by 25 basis points, or by 0.25 percentage points. In 2023 — when the cash rate was increasing — banks were pretty quick to announce they were changing their interest rates after an RBA decision. Here's how many more rate cuts they're expecting after next week's meeting: ANZ: One more cut — which won't be until August, when the bank forecasts a 3.85 per cent cash rate cut — which won't be until, when the bank forecasts a cash rate Commonwealth Bank: Two more cuts — expecting it to get down to 3.35 per cent in December cuts — expecting it to get down to NAB: At least three more cuts this year — expecting it to get down to 3.35 per cent in December At least cuts this year — expecting it to get down to Westpac: Three more cuts this year — expecting it to get down to 3.35 per cent in November What are RBA's 2025 meeting dates?

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History of this topic

RBA delivers first rate cut since 2020
1 month, 1 week ago

RBA delivers first rate cut since 2020

ABC  

Samantha Donovan: Hello, welcome to PM. So what we've seen is those really sticky items in the inflation baskets, I think insurance premiums, out-of-pocket health care costs, the cost of building a new dwelling or rental prices, those price increases have been such that the Reserve Bank has been worried that if it doesn't keep interest rate policy restrictive, and …

Australian shares marginally extend losses after RBA cuts rate as expected
1 month, 1 week ago

Australian shares marginally extend losses after RBA cuts rate as expected

Live Mint  

By Adwitiya Srivastava Feb 18 - Australian shares slightly deepened losses after the local central bank delivered its highly anticipated interest rate cut for the first time in over four years on Tuesday, driven by a sell-off in heavyweight financials. The RBA cut rates by 25 basis points to 4.10%, easing its monetary policy for the first time since November …

Australian central bank cuts benchmark interest rate for the first time since October 2020
1 month, 1 week ago

Australian central bank cuts benchmark interest rate for the first time since October 2020

Associated Press  

MELBOURNE, Australia — Australia’s central bank on Tuesday reduced its benchmark interest rate for the first time since October 2020 as the nation’s inflation cools. “Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance,” the board said in a statement. “Some other central banks …

Borrowers on edge ahead of RBA decision
1 month, 1 week ago

Borrowers on edge ahead of RBA decision

ABC  

Andy Park: Hello, welcome to The World Today. If by its very nature, the Reserve Bank cutting interest rates stimulates demand and increases inflation, if underlying inflation still isn't within the Reserve Bank's band of between 2% and 3%, won't an interest rate cut have policy makers put up the white flag on inflation? Jane Bardon: The independent Yolngu MP …

Why the Reserve Bank has little option but to cut interest rates
1 month, 1 week ago

Why the Reserve Bank has little option but to cut interest rates

ABC  

After more than six months of conjecture and on-again off-again signals, interest rates are about to start a descent. In the December quarter, core inflation came in at just 0.5 per cent which, if you annualise it, comes in at just 2 per cent, smack bang at the bottom of the RBA's target range. Core inflation has dropped rapidly, more …

Reserve Bank cuts interest rates to 4.1 per cent after 13 rate hikes — as it happened
1 month, 1 week ago

Reserve Bank cuts interest rates to 4.1 per cent after 13 rate hikes — as it happened

ABC  

Whether you've been hanging out with us all day or tuned in this afternoon, thanks so much for spending some of your Tuesday with us. But if you're hungry for even more interest rates content tonight, you're in luck. On 7.30, host Sarah Ferguson will speak to Treasurer Jim Chalmers and Westpac chief economist Luci Ellis about the RBA's decision …

Reserve Bank cuts interest rates for the first time since November 2020
1 month, 1 week ago

Reserve Bank cuts interest rates for the first time since November 2020

ABC  

The Reserve Bank of Australia has cut interest rates for the first time since November 2020. RBA governor Michele Bullock noted that the rise in interest rates from the "emergency lows" of the pandemic had meant households with home loans were hurting, but argued high inflation caused more pain. At the post-meeting press conference, Ms Bullock said she couldn't confirm …

How banks are responding to Reserve Bank decision to cut interest rates
1 month, 1 week ago

How banks are responding to Reserve Bank decision to cut interest rates

ABC  

Australia's major banks have already announced rate cuts following the Reserve Bank of Australia's decision to cut interest rates for the first time in four years. NAB announced it would cut home loan interest rates by 0.25 per cent, with Personal Bank group executive Ana Marinkovic saying they were "very pleased" with the decision. Variable home loan interest rates will …

How many more interest rate cuts is the RBA likely to make?
1 month, 1 week ago

How many more interest rate cuts is the RBA likely to make?

ABC  

The Reserve Bank has finally delivered the rate cut many highly indebted mortgage borrowers have been crying out for. The bank's educated guesses of the neutral cash rate range from as low as around 1.5 per cent to nearly 4 per cent depending on which economic model and set of assumptions it uses. It could be that today's cash rate …

RBA interest rate decision closely watched by families in mortgage stress in key marginal electorate
1 month, 2 weeks ago

RBA interest rate decision closely watched by families in mortgage stress in key marginal electorate

ABC  

Mia McShane is a working, single mum of two under mortgage stress. "At the supermarket we will play games, picking the cheaper products and make it into a game so they don't realise," Ms McShane said. Working six days a week just to live Danielle Carroll has her "fingers and toes crossed" for an interest rate cut. Ms Goodes said …

CBA boss Matt Comyn 'acutely aware' customers expect interest rate cuts to be passed on in full
1 month, 2 weeks ago

CBA boss Matt Comyn 'acutely aware' customers expect interest rate cuts to be passed on in full

ABC  

There's a lot of coded language in business and finance. Like, when you ask the head of Australia's biggest home lender about whether the Commonwealth Bank will fully pass on a rate cut the Reserve Bank is widely expected to make next Tuesday. Loading When you crunch the numbers, it seems that well over 2 per cent of CBA's mortgage …

The RBA hasn't changed the cash rate for more than a year. Here's why
1 month, 2 weeks ago

The RBA hasn't changed the cash rate for more than a year. Here's why

ABC  

The cash rate target — a figure that influences how high people's mortgage repayments are set — hasn't changed for more than a year. That's why, when inflation started increasing rapidly in Australia, the RBA began lifting interest rates to stop inflation getting worse — and to drag inflation back down into the 2–3 per cent range. The RBA raised …

When does the RBA meet, what's expected to happen to interest rates and how much could you save?
1 month, 3 weeks ago

When does the RBA meet, what's expected to happen to interest rates and how much could you save?

ABC  

There could soon be relief for households with a mortgage, with economists predicting an interest rate cut when the Reserve Bank board meets in February. The board's decision to cut, increase or keep the official cash rate unchanged will be announced shortly after the meeting concludes at 2:30pm AEDT on February 18. Loan size Repayments decrease $600,000 -$92 $750,000 -$115 …

Has the RBA got any choice but to cut interest rates in February?
2 months ago

Has the RBA got any choice but to cut interest rates in February?

ABC  

There's something called a "momentum trade" on financial markets. Two of the big four banks had already tipped a February rate cut ahead of Wednesday's numbers, but Westpac has now joined them and NAB is reviewing its position. If the RBA chooses not to take its foot off the brake by keeping rates steady at 4.35 per cent on February …

Rate cut chances increase after inflation slows in final quarter of 2024
2 months ago

Rate cut chances increase after inflation slows in final quarter of 2024

ABC  

The odds of an interest rate cut next month have increased, with official figures showing the Reserve Bank of Australia's preferred measure of inflation fell to 3.2 per cent over the year to December. The more volatile headline inflation figure came in at 0.2 per cent for the December quarter and 2.4 per cent for the year, down from a …

Will there be a February rate cut? Macro-economics says unemployment is key
2 months ago

Will there be a February rate cut? Macro-economics says unemployment is key

ABC  

At 11:30am on Wednesday this week, the December quarter inflation rate will be announced by the ABS, with the nation's economists, bankers and mortgagees clustered, agog, around their screens. In the past 50 years, the RBA has only ever cut interest rates twice while unemployment declined — during the Asian crisis and US tech boom in the late 1990s, which …

A February interest rate cut is a real possibility, but there's at least one hurdle to clear
2 months, 3 weeks ago

A February interest rate cut is a real possibility, but there's at least one hurdle to clear

ABC  

At 11:31am AEDT on Wednesday, the Australian dollar began falling against the greenback. Inflation drop raises rate cut odds Photo shows A coloured graphic showing a petrol pump, coins, keys and a bag of fresh groceries against a backdrop of receipts A fall in the Reserve Bank's preferred measure of inflation has increased the odds of an interest rate cut …

Good news millions of Aussies with a mortgage have been waiting to hear for years
2 months, 3 weeks ago

Good news millions of Aussies with a mortgage have been waiting to hear for years

Daily Mail  

Economic analysts and bank bosses have forecast an interest rate cut in the next three months, in welcome news for those struggling with mortgage repayments. Westpac chief economist Luci Ellis told Daily Mail Australia on Tuesday that the Reserve Bank could cut rates soon. Economic analysts and bank bosses have revealed an interest rate cut is on the horizon in …

When will interest rates go down in Australia? Here's what we know
2 months, 3 weeks ago

When will interest rates go down in Australia? Here's what we know

ABC  

Will this be the year mortgage borrowers finally get some interest rate relief? After that, the meetings are currently scheduled for the following dates, although the RBA has indicated some of those meeting dates may change: March 31-April 1 May 19-20 July 7-8 August 11-12 September 29-30 November 3-4 December 8-9 It's the second year of the board's reduced meeting …

RBA chief's major hint that there could soon be some VERY good news ahead for home-owners
3 months, 1 week ago

RBA chief's major hint that there could soon be some VERY good news ahead for home-owners

Daily Mail  

The Reserve Bank has given a strong hint borrowers are getting some interest rate cuts in 2025 even though inflation is still too high. The Reserve Bank has given a strong hint interest rate cuts are coming even though inflation is still too high While headline inflation is at a three-year low of 2.8 per cent, the RBA regarded this …

RBA Is More Confident on CPI, But Too Early to Declare Victory
3 months, 1 week ago

RBA Is More Confident on CPI, But Too Early to Declare Victory

Live Mint  

-- Australia’s central bank is more confident that inflation is moving sustainably toward target but it’s still too soon to conclude the battle is won given a recent pick-up in consumption and a still-tight labor market, minutes of the December meeting showed. The Reserve Bank’s board discussed scenarios in which future policy would be eased to boost economic growth or …

The Fed expects to cut rates more slowly in 2025. What that could mean for mortgages, debt and more
3 months, 1 week ago

The Fed expects to cut rates more slowly in 2025. What that could mean for mortgages, debt and more

LA Times  

Though the Fed doesn’t set mortgage rates, it does influence them. “Because the upcoming Trump administration’s policies might cause a resurgence in inflation or otherwise throw the economy off balance, the Fed might choose to take a wait-and-see approach and hold rates steady at their January meeting.” Depending on the specific proposals the Trump administration manages to enact, the Fed …

NZ recession and Federal Reserve rate cut sink Aussie dollar but show the RBA dodged a bullet
3 months, 1 week ago

NZ recession and Federal Reserve rate cut sink Aussie dollar but show the RBA dodged a bullet

ABC  

If you're looking for a last-minute overseas summer getaway, New Zealand is looking increasingly attractive. On the monetary policy front, the Reserve Bank of New Zealand started lifting its cash rate from COVID-19 lows of 0.25 per cent in October 2021 — a full seven months before Australia's Reserve Bank. Why a Fed rate cut sent the US dollar soaring …

RBA forecast scenarios include interest rate hikes
3 months, 2 weeks ago

RBA forecast scenarios include interest rate hikes

ABC  

Samantha Donovan: To interest rates now, and while most analysts think another hike is highly unlikely, the Reserve Bank has indicated today nothing will be off the table next year when it comes to monetary policy. David Taylor: Betashare's chief economist, David Bassanese, says the Reserve Bank also has to factor in higher levels of government spending and how that's …

The RBA is preparing for all economic scenarios, including an interest rate hike
3 months, 2 weeks ago

The RBA is preparing for all economic scenarios, including an interest rate hike

ABC  

The Reserve Bank may have dropped the phrase "not ruling anything in or out" in its interest rates commentary, but that does not mean an interest rate hike is completely out of the question. That is because, as Dr Hunter explained, it would mean the RBA's key policy goal of achieving its mid-point annual inflation target of 2.5 per cent …

Reserve Bank governor opens door to February interest rate cut, but will she walk through?
3 months, 2 weeks ago

Reserve Bank governor opens door to February interest rate cut, but will she walk through?

ABC  

There was plenty of pre-Christmas cheer at the Reserve Bank press conference. Why productivity is key to any future rate cut Photo shows People on platform and at the departures board at Sydney's Central train station It's the RBA's latest buzzword for justifying why interest rates need to remain at restrictive levels. "I don't think we're quite tipping in the …

Reserve Bank keeps interest rates on hold in December but leaves door open to a February cut
3 months, 3 weeks ago

Reserve Bank keeps interest rates on hold in December but leaves door open to a February cut

ABC  

The Reserve Bank has left interest rates on hold in December for a ninth-straight meeting, but opened the door to a rate cut as soon as February. This is a change in language from the board's November statement, which said it needed to "remain vigilant to upside risks to inflation" and was "not ruling anything in or out". "While the …

When will interest rates go down? Not for at least a few months, the banks say
3 months, 3 weeks ago

When will interest rates go down? Not for at least a few months, the banks say

ABC  

The Reserve Bank of Australia's board is meeting for the final time this year to make a decision about the cash rate. But when the RBA changes the cash rate target, interest rates for mortgages don't automatically change — the individual banks decide that. That's where something called the "trimmed mean" — sometimes referred to as the underlying inflation rate …

A major bank just cut its mortgage rates by up to 0.39%: Will they fall further?
3 months, 3 weeks ago

A major bank just cut its mortgage rates by up to 0.39%: Will they fall further?

Daily Mail  

A major high street bank has announced it will cut mortgage rates by up to 0.39 percentage points. At present, the lowest five-year fix on offer via a major lender is a 4.14 per cent rate with Nationwide Building Society. Speaking to the Global Boardroom conference with the Financial Times, Andrew Bailey confirmed the Bank of England's central forecast of …

RBA unlikely to lower interest rates in 2024 despite inflation at its lowest level since July 2021
4 months ago

RBA unlikely to lower interest rates in 2024 despite inflation at its lowest level since July 2021

ABC  

Australia's inflation rate remained steady in October, with analysts tipping this price data won't change the Reserve Bank's mind to hold interest rates at their highest level in about a decade until at least early 2025. The inflation rate held at 2.1 per cent annually, with the rising price of food, alcohol, cigarettes and recreational activities keeping it up, while …

The interest rate cut is good news for mortgage payers – they need more
4 months, 3 weeks ago

The interest rate cut is good news for mortgage payers – they need more

The Independent  

After a turbulent few weeks, the Bank of England delivered a soothing balm to Britain’s hard-pressed borrowers with a quarter-point cut in interest rates. The Budget also pushed the City’s interest rate swaps market higher – and it is this rather than base rates that governs the price of most popular types of mortgage: two or five year fixes. “Borrowers …

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future
4 months, 3 weeks ago

Sharply rising bond rates could stem Wall Street's 'relief rally' and push interest rate cuts further into the future

ABC  

The apparent roar of approval was almost deafening. It's a world that, down the track, promises a return of inflation and permanently higher interest rates as America shifts to a more protectionist global stance that punishes China and, by extension, hurts Australia. Since mid-September, US money markets almost inexplicably have begun forecasting a rise in interest rates. The bond is …

Interest rates might fall in February … but don't bet the house on it
4 months, 3 weeks ago

Interest rates might fall in February … but don't bet the house on it

ABC  

It's the hope that kills you. Rate cuts may not come until autumn, if they come at all Now even a February rate cut is looking unlikely, according to the money markets, which are pricing just 20 per cent chance of a cut, despite all four big banks and many other local economists forecasting it. Markets are pricing in a …

Reserve Bank keeps interest rates at 4.35pc for eighth-straight meeting despite lower inflation
4 months, 3 weeks ago

Reserve Bank keeps interest rates at 4.35pc for eighth-straight meeting despite lower inflation

ABC  

The Reserve Bank of Australia has kept interest rates on hold at 4.35 per cent for its eighth-straight meeting, despite inflation falling to its lowest level in almost four years. In a statement, the RBA said while inflation has "fallen substantially" since it peaked in 2022, underlying inflation remained too high at 3.5 per cent in the September quarter. The …

ASX has lowest close since mid-September; household spending weaker than expected — as it happened
4 months, 4 weeks ago

ASX has lowest close since mid-September; household spending weaker than expected — as it happened

ABC  

The Reserve Bank's new, less frequent meeting schedule hasn't done away with the Melbourne Cup day board meeting — we'll get the latest interest rate decision this coming Tuesday, half an hour before the race that stops the nation at Flemington. After this week's inflation figures showed price pressures easing off, but the RBA's preferred measure of underlying inflation — …

When will we get an interest rate cut? It's largely up to you
5 months ago

When will we get an interest rate cut? It's largely up to you

ABC  

If you needed an excuse to be a bit of a tight-arse this Christmas, quote the latest inflation figures to your disgruntled family and friends. At 2.8 per cent, the annual headline inflation number plunged back within the RBA's 2-3 per cent target range for the first time in three years. At 4.6 per cent over the past year, the …

The cheapest home loan interest rate in Australia as banks slash rates
5 months, 4 weeks ago

The cheapest home loan interest rate in Australia as banks slash rates

Daily Mail  

Australian borrowers tempted by lower fixed rate mortgages should not jump in too soon, amid predictions of even better deals on offer in 2025. Macquarie Bank on Thursday slashed its two and three-year fixed rates by 20 basis points to 5.39 per cent - now Australia's lowest mortgage rate outside of a green loan. But their lowest fixed rates are …

When will interest rates go down? Here's what you need to know ahead of today's RBA meeting
6 months, 1 week ago

When will interest rates go down? Here's what you need to know ahead of today's RBA meeting

ABC  

The Reserve Bank of Australia board will announce its September cash rate decision on Tuesday at 2:30pm AEST. But when the RBA changes the cash rate target, interest rates for mortgages don't automatically change — the banks decide that. Ms Mousina says economic data since the RBA's last meeting shows: wages growth slowing job growth remaining solid the unemployment rate …

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?
6 months, 1 week ago

These numbers are the clues to the Reserve Bank's puzzle: when will interest rates go down?

ABC  

Perhaps no question matters more to Australians worn down by three years of relentless cost pressures: when will the Reserve Bank cut interest rates? But not too much – which is why when inflation shoots high, the Reserve Bank raises interest rates to suppress demand by making it more expensive to borrow and spend. But the Reserve Bank prefers a …

Interest rates are set to drop, but it's unclear when consumers will feel the impact
6 months, 2 weeks ago

Interest rates are set to drop, but it's unclear when consumers will feel the impact

NPR  

Interest rates are set to drop, but it's unclear when consumers will feel the impact The Federal Reserve is gearing up to start cutting interest rates for the first time since 2020 — but a key decision looms: whether to start small or big. HORSLEY: Well, Juana, I can say with 100% certainty the central bank is going to cut …

Why the Reserve Bank will be forced to cut rates before year's end
6 months, 3 weeks ago

Why the Reserve Bank will be forced to cut rates before year's end

ABC  

Until just a few weeks ago, it seemed as though the developed world had pulled off what once was thought to be the impossible. And yet, despite this mounting evidence of a critical economic slump, there remains a rump of high-profile economists openly criticising the Reserve Bank of Australia's reluctance to push interest rates above 5 per cent. Parliament House …

The US is about to start cutting interest rates, so expect Australia to follow
7 months ago

The US is about to start cutting interest rates, so expect Australia to follow

ABC  

Just three weeks ago, Reserve Bank Governor Michele Bullock declared interest rate cuts unlikely in the next six months. But if there was any doubt about what's going to happen to global interest rates, the US Federal Reserve chair Jerome Powell removed it on Saturday. Rate cuts by the US Fed and other central banks will create a near-irresistible pressure …

Why some banks are cutting interest rates for term deposits and home loans when the Reserve Bank isn't
7 months, 1 week ago

Why some banks are cutting interest rates for term deposits and home loans when the Reserve Bank isn't

ABC  

Some of Australia's biggest banks found themselves in the headlines this week after confirming that they were reducing a handful of their interest rates. The rate cuts however weren't universally applied: they affected term deposits with some banks and home loans with others, and came days after the Reserve Bank of Australia reiterated it wasn't rushing to lower interest rates …

Why Reserve Bank of Australia boss Michele Bullock is refusing to consider cutting rates soon - even though mortgage holders in New Zealand, Canada, UK and EU have already had some relief
7 months, 2 weeks ago

Why Reserve Bank of Australia boss Michele Bullock is refusing to consider cutting rates soon - even though mortgage holders in New Zealand, Canada, UK and EU have already had some relief

Daily Mail  

The woman who decides the fate of millions of mortgage holders has declared a rate cut won't be happening anytime soon - despite what other countries have done this year. Reserve Bank Governor Michele Bullock told a parliamentary hearing on Friday that Australia would not be copying the approach of other central banks that have cut rates this year, with …

The RBA says don't expect interest rate cuts for six months. Here's why it could be sooner
7 months, 3 weeks ago

The RBA says don't expect interest rate cuts for six months. Here's why it could be sooner

ABC  

Days ago, at the start of last week, there was talk of a Reserve Bank rate hike. So despite what the Reserve Bank governor said on Tuesday, here's why so many people expect interest rates will have to come down — possibly sooner than predicted. It was 3.6 per cent by March, then 3.8 per cent in June, and will …

RBA Governor delivers another blow to Aussies with a mortgage - and why you shouldn't expect rate cuts anytime soon
7 months, 3 weeks ago

RBA Governor delivers another blow to Aussies with a mortgage - and why you shouldn't expect rate cuts anytime soon

Daily Mail  

Australia's most powerful banker has aggressively scotched expectations of rate cuts by Christmas - despite global concerns about an American recession and weak local economic activity. In the media conference afterwards, Governor Michele Bullock stressed a rate cut wasn't happening soon - despite the Reserve Bank statement emphasing the risk of an economic slowdown and weaker gross domestic product 'Given …

Finance guru Mark Bouris makes worrying admission about Australia
7 months, 3 weeks ago

Finance guru Mark Bouris makes worrying admission about Australia

Daily Mail  

Finance guru Mark Bouris has claimed that Australia has been in a recession for the past 18 months with the standard of living the worst its been in two years. Finance guru Mark Bouris has claimed that Australia has been in a recession for the past 18 months The cash rate is currently at a 12 year high of 4.35 …

Interest rate decision: RBA to make a rate call amid sharemarket bloodbath
7 months, 3 weeks ago

Interest rate decision: RBA to make a rate call amid sharemarket bloodbath

Daily Mail  

Australian home borrowers could be in line for super-sized rate cuts by Christmas after US recession fears wiped more than $150billion from the local share market in just two days. CommSec market analyst Steven Daghlian said a jump in the American jobless rate to 4.3 per cent, the highest level since October 2021, was spooking financial markets and dragging down …

RBA's Michelle Bullock says no cuts expected in next six months after leaving interest rates on hold
7 months, 3 weeks ago

RBA's Michelle Bullock says no cuts expected in next six months after leaving interest rates on hold

ABC  

The Reserve Bank of Australia has kept interest rates on hold at 4.35 per cent. "Financial markets have been volatile of late and the Australian dollar has depreciated," the RBA Board said in a statement. "In doing so, it will continue to pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the …

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