RBA holds cash rate

RBA holds cash rate

RBA holds cash rate

The Reserve Bank of Australia (RBA) has decided to keep the cash rate on hold at 3.85 per cent at its latest meeting.
With inflation trending lower, it’s looking like borrowers can expect another cash rate cut soon.

Read today’s official statement on the RBA’s website

The latest figures from the Australian Bureau of Statistics showed the Consumer Price Index (CPI) rose 2.1 per cent over the 12 months to May. That’s down from a 2.4 per cent rise in the 12 months to April.

Meanwhile, underlying inflation, as represented by the trimmed mean, fell to 2.4 per cent in May, down from 2.8 per cent in April.

 

That’s the lowest it’s been since November 2021 and well within the RBA’s target band of 2-3 per cent.
Economists say that inflation is likely to remain sustainably within the band.

With inflation edging lower, there was widespread talk of a third cash rate cut being on the cards. Some traders were even anticipating back-to-back interest rate cuts in July and August following the falling inflation figures. However, the RBA decided to keep the cash rate on hold – for this month at least.

 

If you’ve had the same home loan for a while, now is the time to review how it compares to others.
We may be able to find you a more competitive interest rate, or a home loan with features that could help you save on interest or pay down your mortgage sooner.

If you’re looking to purchase your first or next home, or an investment property, it might be worth getting in sooner rather than later.
Australian home prices climbed to record highs in June amid strong buyer demand and fewer listings, and prices are expected to keep rising.

The next RBA cash rate decision will be announced on 12 August, and all eyes will be on the RBA to see its next move

To chat through your finance options, get in touch today. We can find the right home loan for your specific needs.