In welcome news for mortgage holders across the country, the Reserve Bank of Australia (RBA) has today decided to decrease the cash rate by 0.25% to 3.85%.
This move reflects the RBA’s growing confidence that inflation is coming under control. Most notably, trimmed mean inflation for the March 2025 quarter came in at 2.9%, officially within the RBA’s target range of 2-3%.
While the RBA is still cautious, this shift suggests a move toward easing monetary policy however there are still factors that the RBA will be watching closely, including:
- Global risks, such as Trump’s tariff policies, which continue to cast a shadow on global growth, though recent easing of those tensions provides some relief.
- Locally, the RBA will be watching labour market strength, with unemployment steady at 4.1% and wage growth edging up to 3.4%, both factors could still contribute to inflation pressure in the medium term.
Whether you’re considering refinancing your mortgage to secure better terms or exploring property investment opportunities, now could be an advantageous time to review your financial strategy.
If you’d like to have a chat about what today’s news means for you and your finances, please don’t hesitate to get in touch.