At its first meeting of 2025, the Reserve Bank of Australia (RBA) reduced the cash rate by 0.25 per cent, from 4.35 to 4.10 per cent, a move that was widely tipped by the markets and economists across the country.
Inflation continues to ease and was sitting at 2.4 percent for the 12 months to December 2024, which is well within the target range of 2 to 3 percent.
The largest bank in Australia, Commonwealth Bank, has already announced that they are passing on the full rate cut of 0.25% effective 28 February 2025. It is therefore expected that other banks will follow.
Current indicators suggest more potential cash rate reductions during 2025, which is great news for mortgage holders and the property market.
About the writer
Ian Pepper has had a long and distinguished career as a finance and real estate professional. Originally trained as a Chartered Accountant in 1995, Ian worked in Sydney and London. He has an MBA from Macquarie Graduate School of Management and now sells real estate with Ray White Helensburgh. Ian also volunteers with local community groups including school P&Cs, sporting clubs and business chambers.
Ian is a regular advertiser in the Illawarra Flame.
