Share this @internewscast.com

The Reserve Bank of Australia (RBA) has reduced interest rates to their lowest level in two years due to slowing inflation but continues to caution about an unpredictable economic future.
After a two-day meeting of its monetary policy board, the central bank lowered the cash rate to 3.85 per cent on Tuesday. Treasurer Jim Chalmers described this as “welcome relief” for those with mortgages.
This decision follows the March quarter, where inflation was reported at 2.4 per cent, while the underlying inflation — favored by the RBA for excluding erratic elements — was recorded at 2.9 per cent.
This latter number falls right at the RBA’s inflation target range of 2-3 per cent.

The monetary policy board noted the considerable drop in inflation from its 2022 peak, yet warned that headline inflation may approach the top of the range next year as “temporary factors,” such as energy bill rebates, expire.

However, it did expect underlying inflation would moderate to around the midpoint of its target band over the forecast period — until July 2027.
It also warned of an uncertain economic outlook, pointing to, among other things, concerns over US tariffs, “pronounced” geopolitical uncertainties, and domestic economic activity.

Nevertheless, it assessed that “risks to inflation have become more balanced” and opted to lower rates since inflation is anticipated to hover around the target range.

How much will the rate cut save mortgage holders?

Those with a $500,000 loan would save around $76 a month if their lender passes on the rate cut, according to an analysis by financial comparison website Canstar.

For mortgage holders, this means potential monthly savings of $91 for a $600,000 loan, $114 for a $750,000 loan, and around $152 for those with a $1 million loan.

Which banks are passing on the latest interest rate cut?

Lenders will likely continue to make announcements over the coming days.
But so far, these banks and lenders have said they will pass on the quarter-point cut from:
30 May: Commonwealth Bank, NAB, ANZ, Bankwest, Suncorp, People’s Choice Credit Union
3 June: Westpac, ING, RACQ Bank, Bank SA, Bank of Melbourne, St George

Online lenders Athena and Unloan have also passed on the cut immediately.

How far could interest rates fall?

The Commonwealth Bank expects the cash rate will fall by a further 0.50 percentage points — to 3.35 per cent — by the end of 2025
ANZ and Westpac also expects it will fall to 3.35 per cent, with the former predicting August and the latter by the end of the year.

Unlike the other big four banks, NAB had predicted a 0.50 per cent cut in May — a move that ultimately didn’t eventuate. It has yet to update its forecasts.

When will the RBA make its next interest rates decision?

The monetary policy board will next meet on 7-8 July.

Share this @internewscast.com
You May Also Like
Wayne and Carol cruise ship immigration story

Perth Couple’s Dream Vacation Derailed by US Immigration Issue

Exclusive: An Australian couple had to cancel a costly cruise and now…

More Than $93 Million: The Reason Banks Are Reimbursing Low-Income Customers

Banks that imposed hefty fees on low-income Australians have agreed to repay…

Trump Claims Severe Hunger Exists in Gaza, Opposing Netanyahu’s Statements

US President Donald Trump has commented on the severe hunger situation in…

Thailand and Cambodia Reach ‘Unconditional Ceasefire’ Following Deadly Conflict with 36 Casualties

Thailand and Cambodia’s leaders agreed to an “unconditional” ceasefire Monday, after five…
Huge hailstone fell in Stanthorpe, Queensland on Tuesday.

Urgent Alert: Massive Storm Set to Impact Millions in Australia

Millions of Australians in the country’s largest cities could be facing a…
As Trump shows off his golf courses for Britain's leader, crisis in Gaza looms

While Trump Showcases His Golf Courses to the UK Leader, Gaza Crisis Escalates

US President Donald Trump once suggested his golf course in Scotland “furthers”…
Gunman believed dead after police officer, civilians shot in Manhattan

Manhattan Shooting: Suspected Gunman Killed, Police Officer and Civilians Injured

A gunman is suspected to have died after opening fire on a…
Fury over plans for longer public lockout for Albert Park before F1

Outrage Sparks Over Extended Public Access Restrictions at Albert Park Ahead of F1

Melbourne community sporting groups have slammed new plans to lock them out…
A controversial new fee for the Sydney New Year's Eve fireworks is being debated.

Sydney Council Discusses Admission Fee for New Year’s Eve Fireworks Event

A controversial new fee for the Sydney New Year’s Eve fireworks is…
An Aussie with a TAFE IT Advanced Diploma shared the horror of seeing more than 900 people applying for just one entry level role on the job website SEEK

Small Job Ad Detail Reveals Major Issue in Pursuing Entry-Level Positions: ‘I Was Caught in This Pitfall’

Young Australians have expressed their frustration about competing with hundreds of other…
Chloé Höglund , 34, who is originally from New Zealand, has traveled over 8,000 miles across the US by train

My Solo 200-Hour Train Adventure Across America: The Unvarnished Truth

A woman who has traveled over 8,000 miles across the US by…

Cambodia Refutes Thailand’s Accusations of Ceasefire Violation Amid Citizen’s Optimism for Lasting Peace

A shaky ceasefire between Thailand and Cambodia appeared to be holding Tuesday,…