20-05-2025
RBA rate cut live updates: Australian homeowners sweat on interest rates decision and pray for relief
Join us as we find out whether the Reserve Bank will gift Aussie homeowners more relief in the form of another interest rate cut.
The decision will be handed down at 2.30pm AEST.
When the Reserve Bank releases its Statement of Monetary Policy at 2.30pm today, economists will be scrutinising the language to determine what it means for future rate cuts.
Currently, most economists are expecting at least two more cuts by the end of the year, bringing the official cash rate down to 3.35 per cent.
But with global uncertainty, how the Bank frames its forward outlook will either confirm or confuse those predictions.
Brien McDonald, senior economist at National Australia Bank is looking for guidance on what is the 'neutral rate' - an official cash rate that is neither restrictive or stimulatory.
After a decade of ultra-low rates following the Global Financial Crisis and COVID, that rate is expected to be significantly higher.
Diana Mousina, deputy chief economist is looking for something similar.
If the RBA says monetary policy is still restrcitive, that suggests 'the amount of cuts so far is small and more is likely'.
By contrast if the Bank says there is too much uncertainty, or 'we have to be careful about the pace of easing', that suggests any future rate changes will be minimal or take place only when the data confirms it is time to move.
Mr McDonald is also looking for a steer on how the 'Liberation Day' tariffs have affected the Australian economy, and where pockets of inflation continue to bedevil the economy.
Expectations are high that the RBA will cut interest rates today, with a decision due at 2.30pm Sydney time.
Markets tip are nearly-certain that the official cash rate will be cut 25 points to 3.85 per cent.
But there are a few reasons to be cautious. Analysts warn borrowers should be wary of the risk that inflation bounces back.
Read more here from The West Australian.
It's been a huge day in news already but let's be honest - the main thing on everyone's mind is interest rates.
Will the Reserve Bank cut rates again for the second time in a row, and provide some much needed relief for Aussie homeowners?
The answer is probably - but even if they do that doesn't mean it will be good news.
The hidden danger behind another rate cut if that housing prices may go up again.
Which means that anyone trying to get into the market will find it even harder.
Read the full story here.
