RBA Reduces Interest Rates

[rdhopkins2]

Happy days for those with existing mortgages or who are looking to purchase property (early bird gets the worm).

The Reserve Bank of Australia reduced interest rates today by 0.25%.

https://www.rba.gov.au/media-

releases/2025/mr-25-03.html

In Brief: Statement on Monetary Policy – February 2025

Inflation has continued to ease, and underlying inflation is expected to return to the 2–3 per cent range a little sooner than we thought. The labour market has been surprisingly strong. The global economic outlook is uncertain due to new trade policies and international tensions.

www.rba.gov.au

It sounds like the big banks at least will pass this drop on to clients!

Good to see a reduction after 4 years.

Some very general thoughts from me:

*Maintain your repayment $ prior to the rate reduction (pay even more if you can)

*Don’t overextend yourself with a purchase. Try and find a property you are more comfortable making repayments on. Don’t just borrow as much as you can if you really don’t have too.

*If you’re a first home buyers, look at some of the government grants and guarantees that you may qualify for.

*As more borrowers can borrow more, prices are likely to move up given increased competition; now is the time to strike whilst we he iron is hot.

*If you’ve got an existing mortgage, don’t pay the loyalty tax. Make sure you’re getting a he best possible deal in the market.

 

[Shell]

I'm on fixed. So not really that concerned about it until the end of next year

 

[Jatz]

Still waiting on ours to tell us whether they'll pass it on. "We're looking into it".

 

[Hamingja]

Mine only made the decision to reduce on Monday. It will be interesting to see how many the banks will pass on in full. 13 passed on in full going up. They'll shaft existing customers at some point and not match the RBA but even the big 4 don't have brass necks to do it in the middle of an election campaign. They don't really have any excuse not to either given they borrow on international markets who have cut rates ahead of them so the go to excuse of funding costs won't wash.

 

[Big Sauce 21]

Any idea when Rams are dropping it if at all ? I'm aware they're been taken over but can't find anything online. I don't look at the loan much. I'm on a good rate with offset so I don't look into it often.

EDIT - NVM, Received the email few hours after this post.