From May 2022, the Reserve Bank of Australia (RBA) began one of the most aggressive monetary tightening periods in Australian history as it tried to curb soaring inflation.
But with several months of cash rate pauses by the RBA, many believe the tide may have turned.
So, now the question on everyone’s lips is: when will interest rates come down in Australia?
While there’s no crystal ball to predict exactly what the RBA will do next year, there is growing speculation that interest rates will come down in 2024. Let’s see what the experts are predicting.
It’s important to remember that the predictions above are not a guarantee. Unforeseen events like changes in global economic conditions or domestic policies can impact cash rate decisions.
The RBA has been trying to get inflation back within the target range of 2-3%. In recent months, we’ve seen inflation coming down, so it appears things are on track.
According to the RBA, headline inflation is expected to decline to 4.5% by the end of 2023 and to reach 3% by mid2025.
Make sure you keep across the news so that you are up to date with the RBA’s cash rate decisions.
Next year the RBA is changing things up, following recommendations from the review of the central bank. There will be eight cash rate decisions instead of 11. Four of the meetings will be on the first Tuesday of February, May, August and November. The other four meetings will be held midway between these meetings (dates to be confirmed).
With interest rates potentially on the move, it’s important to review your home loan. It’s especially true if you haven’t had it checked in the last two years.
Please contact us for a home loan health check and we’ll explain how your current loan measures up in today’s mortgage environment, along with if refinancing could be right for you.
Maybe you’re thinking about buying a property once interest rates come down. Contact us about how a drop in interest rates could affect your borrowing capacity and what you can do now to prepare for a property purchase in the near future.
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