The Reserve Bank of Australia (RBA) reduced the official interest rate by 25 basis points to 3.85% following today’s monetary policy meeting. The full statement from the RBA is available to read here.
The move was in line with market expectations, particularly after the Australian Bureau of Statistics found that annual trimmed mean inflation (the RBA’s preferred measure) had dropped to within the target range of
2-3% in the March 2025 quarter, falling from 3.3% to 2.9%.
Looking ahead, forecasts indicate there could be more cuts to come in 2025, but that will depend on changes to inflation, the labour market and broader economic conditions.
As lenders generally follow on from the RBA, they will likely start announcing cuts to their variable rates after today’s decision.
Contact me if you’d like to discuss the current interest rate environment and how it may affect your current loan or future borrowing plans.