A substantial reduction in interest rates is anticipated today as the Reserve Bank of Australia (RBA) gears up to announce its decision regarding the national cash rate. Following meetings scheduled over the past two days, RBA Governor Michele Bullock is expected to unveil a cut of 0.25 per cent, which aligns with the forecasts from the major banks. This change would lower the interest rate from 3.85 per cent to 3.6 per cent, marking the lowest level since the COVID-19 pandemic.
If implemented, this would also signify the RBA’s first consecutive rate cuts in several years. Such a decrease would be a relief for mortgage holders and significant borrowers who have endured a series of aggressive rate hikes by the RBA aimed at controlling rampant inflation.
Despite this potentially positive news, some economists caution that the country is not entirely in the clear. Nevertheless, the RBA has indicated confidence that inflation is now manageable, falling within its target range of 2 to 3 per cent. There is speculation that further rate cuts may be forthcoming later in the year.
The RBA’s decision will be publicly disclosed at 2:30 PM AEST today.