No interest rate cuts likely in the near term.

Following the Reserve Bank of Australia’s (RBA) decision to once again?hold the official cash rate at 4.35 per cent, RBA governor Michele Bullock addressed the board’s rate hike and cut considerations in the post-meeting press conference.

The RBA has held onto this rhetoric of “not ruling anything in or out” for quite some time now and, when asked if board members had debated or discussed raising or cutting interest rates, reiterated that the board does not see interest rate cuts in the near term.

ANZ head of Australian economics Adam Boyton has the view that the first rate cut will be in February 2025, with the cash rate eventually reaching 3.6 per cent by the end of the year.

Bullock further said that most advanced economies had their official interest rates up “over 5 per cent” and board members observed how restrictive some of those countries are in comparison to Australia.

Some of the smaller lenders are looking to entice borrowers to refinance with rates as low as 5.54% fixed for 2 years. Some are still offering cashback incentives up to $3000 to sweeten the deal.

When considering this offer, its worthwhile getting your broker to calculate the amount that could be saved over the 2-year period compared to say the ANZ prediction above.

However, you many homeowners could benefit now by saving up to $600 per month on a $700,000 mortgage that’s currently on a 6.85% interest rate loan.

If you would like to know how much you could save, [email protected] ?

Its your money, you work hard for it, let me see if I can keep more of it in your pocket.

This article is not intended to provide specific legal or financial advice, and the content contained therein is subject to change.

Martin Bailey is a Credit Representative (522104) of Buyers Choice Licencing Pty Ltd ACN 626 172 281 (Australian Credit Licence Number: 509484)

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