RBA February 2025 Rate Cut

The Reserve Bank of Australia (RBA) has decided to cut the cash rate to 4.10% and the interest rate on exchange settlement balances to 4.0%. This decision shows the RBA’s stance on inflation moderating in the economy. 

For homeowners and families with mortgages, this means no immediate change to interest rates, but below is a list of our lenders that have announced a rate cut. With many lenders passing on the full 25 percent rate cut, effective to a specific date.

RBA Outlook

The RBA maintains that the global outlook remains uncertain. Noting the geopolitical and policy uncertainties since the election of Trump. It is important to note that in recent months inflation in the United States has continued to remain sticky, which may impact the FED and interest rate settings. in 2025.

The RBA remains cautious on the prospects of further policy easing in 2025 but will ultimately be guided by the strength of the Australian economy and household.

How does the rate change impact my repayments?

It is important to pay attention to your specific lender. Around half of lenders will not automatically adjust down the monthly repayment. You may need to follow up with your lender to update and reduce the repayment. Some lenders will maintain the same monthly repayment, instead using the higher repayment to accelerate the rate of repayment of the existing loan.