The RBA has announced another 25-basis-point cut to the cash rate, now sitting at 3.60%. This marks the third reduction this year, signaling a continued easing path as inflation moderates and economic uncertainty persists.
Inflation Down, But the Road Ahead Is Bumpy
Trimmed mean inflation is now at 2.7%, and headline inflation has dipped to 2.1%. While that’s good news for household budgets, the RBA is still juggling global risks and domestic challenges. Real incomes are rising, but consumption growth could slow if households remain cautious.
Unemployment has edged up to 4.3%, and wage growth is easing. Yet, productivity remains sluggish, and some sectors are struggling to pass on cost increases.
What This Means for Homeowners
Lower rates could mean better deals for borrowers. If you’re on a variable rate, keep an eye on your lender—some may pass on the cut, while others might hold back. For those considering refinancing or entering the market, this could be a prime opportunity to lock in more favourable terms.
With the RBA focused on price stability and full employment, future decisions will hinge on how the economy responds to these changes.
Time to Review Your Home Loan Strategy
Whether you’re buying, refinancing, or investing, now’s a smart time to reassess your financial position. Visit manageyourloans.com.au to explore your options and get expert advice tailored to your goals.