20/05/2025
More good news for mortgage holders! The Reserve Bank of Australia (RBA) has today cut the official cash rate from 4.10% to 3.85%, offering welcome relief for borrowers. This is the second cut in 2025, following February’s adjustment.
Why the RBA made this move.
The decision was widely anticipated, driven by softer inflation, global uncertainty, and signs of slowing household spending. Here are some key points:
-Inflation: Underlying inflation rose 0.7% in Q1, bringing annual inflation to 2.9%—within the RBA’s 2–3% target band.
-Employment: Unemployment held steady at 4.1% in April, with 89,000 jobs added—far above expectations of 20,000.
-Wages: Wage growth remained in line with forecasts, helping to ease inflation concerns.
-Household Spending: Q1 consumption data showed weaker spending, pointing to a more cautious consumer.
-Global Outlook: Ongoing uncertainty—particularly around US trade policy—is weighing on global economic momentum.
What this means for you
If you haven’t reviewed your home loan in over a year, now’s a smart time to check whether your rate is still competitive.
Lower interest rates can boost your borrowing power and improve serviceability—whether you’re buying your first home, refinancing, or planning your next investment.
Got questions? I’m here to help you explore your options.