Hi ,
Big news this week, when the Reserve Bank's widely anticipated cash rate cut came as hoped, with millions of Australians
breathing a sigh of relief.
It was the first time since 2020 that the RBA have decreased the official cash rate, and the first adjustment to the 4.35 per cent rate since November 2023.
When passed on by the banks, the 0.25 per cent cash rate cut from 4.35 per cent to 4.1 per cent could mean that the average homeowner with a $600,000 loan could receive as much as a $90 per month saving on their mortgage repayments, providing options to enjoy extra cash in their pockets or establish a buffer against potential mortgage interest rate rises in the future.
The rate cut also increases the borrowing power of home buyers entering the market.
The RBA meet again on the 1st April 2025. They remain cautionary about future
cuts, reiterating that returning inflation to its target of between 2-3 per cent is their priority.
