The Reserve Bank of Australia (RBA) has announced a hold on the cash rate of 3.85% at today’s meeting.
While some market watchers, including those at the big four banks, expected a cut, the RBA’s decision reflects a balance of key economic factors – both supportive and cautionary.
On the one hand, inflation has continued to ease, with trimmed mean inflation for the March 2025 quarter sitting at 2.7% and within the RBA’s 2–3% target range. However, this is being weighed against signs of resilience in the broader economy:
- Unemployment remains steady at 4.1%, indicating that labour demand is still strong.
- Wages growth has ticked up, reaching 3.4% suggesting ongoing pressure on inflation from the demand side.
- An already strong housing market could be influenced by further rate cuts, driving house prices even higher.
The RBA has made it clear that it will continue to monitor inflation, employment and global conditions closely before making any further moves.
Today’s decision underscores the importance of staying informed about economic developments and their potential impact on your finances.
Whether you’re considering buying a new home, refinancing your mortgage to secure better terms or exploring property investment opportunities, now could be a good time to review your financial strategy.