RBA Holds Cash Rate-final rate call for 2024
- Goodluck Onwukwe
- Dec 15, 2024
- 2 min read
At its last for this year, 10-December 2024, the Reserve Bank Board (RBA) kept the cash rate on hold at 4.35%.
Details of this decision can be found on the RBA website. The first board meeting for 2025 will be on 17-18 February 2025.
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This decision was widely expected, with deadline inflation trending lower. Overall, the cash rate has remained flat for 2024.
According to the Australian Bureau of Statistics (ABS) current Consumer Price Index (CPI) inflation is 2.8% in the September quarter. This is significantly lower than the June figure of 3.8%. According to the ABS, the Energy Bill Relief rebates and the introduction of State government rebates applied from July 2024 were driving factors in reducing the CPI inflation. You can read more on this on the ABS website.
Sustainably returning inflation to target remains within a reasonable timeframe remains the RBA priority. Underlying inflation remains too high at 3.5% over the year to September quarter. The next CPI figures are expected on January 29, 2025. Of the big four banks, only Commonwealth Bank (CBA) believes that a rate cut is likely in February 2025. The other 3 banks predict a cash rate cut in May 2025.
What does this mean for you?
With the year coming to an end, now is the time to review your home loan and make sure that you are still getting a competitive offer that meets your needs. The RBA rate decision affects the interest rate lenders offer on the loans provided. Whether you are on Fixed interest rate or Variable interest rate loan, a health-check of these loans is generally advisable.
It is important to review your home loan regularly to make sure it is best for you. If you are struggling with your mortgage repayments, as a priority will be to seek advice about whether your home loan is right for you.
If you are looking to buy a home, getting the right advice for you is important so that you can make informed decisions.
As a specialist finance broker, we will compare the market for you, explain what your options are, and advice if there is a more competitive home loan with interest-saving features.
We offer you an obligation-free loan review whether you are refinancing or getting your first loan. Let us do the research, and find you a loan tailored to your unique requirements.
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