Will the RBA Deliver a Rate Cut This Summer?

As 2024 nears its end with only one Reserve Bank of Australia (RBA) decision remaining, homeowners are keen to know if a summer rate cut is on the cards. Here’s what to expect for interest rate movements and how you could potentially secure a better rate before the holidays.

“Are we there yet?” It’s a question familiar to anyone on a long summer road trip, but it might just sum up the anticipation of Australian homeowners eagerly awaiting a rate cut.

The silver lining? Some major banks predict that rate cuts could begin as early as the end of this summer.

November: Rates on Hold

In November, the RBA decided to keep rates steady. This decision came despite inflation slipping to 2.8%, comfortably within the RBA’s preferred 2-3% range.

So, why the wait? The RBA has highlighted that part of the inflation drop stems from temporary cost-of-living measures, like the $300 power bill credit. The concern is that inflation may still be too stubborn and the future too unpredictable to cut rates just yet.

When Will Rates Start Falling?

The RBA has reiterated that it’s committed to bringing inflation “sustainably back to target” within the 2-3% band. Given this cautious approach, the likelihood of a rate cut at their December 10 meeting remains slim.

RBA Governor Michele Bullock offered no hints regarding future rate changes in a recent speech. However, the banks are more forthright and optimistic.

The Commonwealth Bank, once hopeful for a December cut, now eyes February 18, 2025, as the starting point for a series of potential rate reductions. Westpac, ANZ, and AMP also predict rate cuts in February, while NAB anticipates the first change in March 2025.

Get Ahead: Variable Rates Are Already Dropping

While February may not sound far off, waiting for official rate cuts can feel endless, especially without certainty. Thankfully, there are ways to take charge now.

In response to growing expectations for future rate cuts, some lenders have already reduced their variable rates to under 6%. This trend is reflected in a 2.1% increase in home loan refinances over the past month.

Start Saving Today

Why wait for the RBA when you might secure a better deal now? Refinancing your home loan could free up extra funds and bring some festive cheer to your budget.

At Osinski Finance, we specialise in helping you find competitive rates tailored to your needs. Whether you're looking to refinance, secure a new home loan, or explore options for investing in a property, our team is here to guide you every step of the way. We offer comprehensive services that ensure you’re well-positioned for your financial goals, from managing current mortgage rates to strategising for property investments.

Reach out to us today for a personalised loan review and discover if you could save on your current interest rate. Let us guide you toward potential savings, smarter investment decisions, and a brighter financial outlook.

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