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Scottish Sun
20-05-2025
- Scottish Sun
From sea pools to hidden caves: Spain's cheapest beach destinations this summer
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SPAIN still has some amazingly affordable holidays on offer this summer - and we've found the cheapest beach destinations. New research from TravelSupermarket has revealed the ten most affordable Spanish beach destinations for summer 2025, with the Costa del Sol's Manilva taking the top spot as the cheapest resort. Sign up for Scottish Sun newsletter Sign up 9 Many Spanish resorts cost under £500 per person, for a week's break Credit: Alamy Steph Marinkovic, head of editorial at TravelSupermarket, said: "Spain continues to represent excellent value for holidaymakers, with our research revealing impressive affordability across mainland Spain, the Canaries, and the Balearics. "Holidaymakers might expect a huge resort to offer the best value, but this shows that getting away from the crowds and finding unique, authentic spots can mean travellers save big. "Across the top ten, we see a mix of established resort towns and lesser-known gems, giving budget-conscious travellers plenty of options for their summer getaway." Manilva, Costa del Sol = £371 The little-known municipality of Manilva has emerged as Spain's most affordable resort for summer 2025, with seven-night getaways averaging around £371 per person. "What makes Manilva truly special is that it's actually three distinct experiences in one destination," explained Steph Marinkovic. "Visitors can base themselves in the traditional whitewashed pueblo up on the hill with its stunning coastal views, the more polished Puerto de la Duquesa marina area, or the authentic Spanish beach town of San Luis de Sabinillas - all at incredibly competitive prices." The area is full of vineyards, which according to Marinkovic, are one of Manilva's "best-kept secrets". "Locals have been growing Moscatel grapes here for generations, traditionally for sweet wines and raisins," she said. "Today, producers like Nilva are reviving the tradition with modern dry whites, and visitors can tour vineyards, taste wines, and buy bottles at a fraction of the cost you'd pay in France or Italy." Explore Tenerife with The Sun's Best of Beaches There is also the Blue Flag-certified Sabinillas Beach just minutes away, the gorgeous 18th-century Church of Santa Ana in the pueblo, loads of affordable tapas bars, and a chilled marina with restaurants serving food from around the world. "Everything runs at that lovely, laid-back pace that's getting harder to find in the busier Costa del Sol hotspots," Marinkovic said. Costa del Silencio, Tenerife = £424 Tenerife's Costa del Silencio takes second place for affordability, with seven-night holidays averaging £424 per person. "Costa del Silencio offers exceptional value for those seeking summer sun in the Canaries," noted Marinkovic. "What's great about this spot is that it's much quieter than Tenerife's busy southern resorts, but it's super affordable. 9 In Costa del Silencio, Tenerife, there is the golden Montana Amarilla volcanic formation Credit: Alamy "You've got the amazing golden Montaña Amarilla volcanic formation right on your doorstep - one of Tenerife's most Instagram-worthy natural landmarks – without paying the premium prices you'd expect for such spectacular scenery." The destination is also known for snorkelling and diving opportunities with crystal clear waters and access to the nearby Golf del Sur. S'illot, Majorca = £449 At £449 per person for a week-long stay, Majorca's east coast resort of S'illot ranks as the third most affordable Spanish beach destination. "S'illot gives you the best bang for your buck on the Balearic Islands this summer,' Marinkovic explained. "The secret advantage of this compact resort is its location - you can hop on a bike and explore Majorca's gorgeous eastern coastline on the cycle path that links several beach towns. 9 Majorca boasts a cycle path along the eastern coastline, which links several towns Credit: Alamy "Stay here and you've basically got a budget-friendly launchpad to visit pricier spots like Cala Millor and Sa Coma without paying their premium rates." In particular, Marinkovic noted that the soft sandy beaches are perfect for families and the famous Drach Caves are easily accessible from here. Calpe, Costa Blanca = £470 The former fishing village of Calpe on the Costa Blanca offers seven-night holidays averaging £470 per person. Marinkovic shared: "Calpe blends affordable holiday basics with genuine Spanish charm in the old town. "You can wander through the Moorish Quarter and check out the local fish market – the kind of authentic experiences that might cost a fortune elsewhere, but here they're just part of your daily holiday routine. 9 In Calpe, Costa Blanca, there is a local fish market to explore Credit: Alamy "And if you want a lively night out or family attractions, then it's just 15 miles south to reach Benidorm." Cala Ratjada, Majorca = £488 Nestled on Majorca's northeast coast, this pretty harbour town averages £488 per person for a seven-night stay. Marinkovic said: "Cala Ratjada is a total bargain for a place with such gorgeous beaches. "Savvy savers have cottoned on that you can enjoy the same crystal-clear waters and golden sands as the pricier northeastern Majorca spots without the hefty price tag. "The best part? You've got three completely different beaches within walking distance – Son Moll for easy swimming, stunning Cala Gat for stunning sunset photos, and the larger Cala Agulla that rarely gets crowded." She also shared that there is a bustling seafront promenade too, with restaurants and bars to watch the world go by. Callao Salvaje, Tenerife = £498 9 Callao Salvaje is only a 15-minute drive from Aqualand Credit: Alamy This Tenerife resort ranks sixth for affordability, with week-long holidays averaging £498 per person. "Callao Salvaje is Tenerife's hidden gem for bargain hunters," said Marinkovic. "The self-catering apartments here are brilliant for keeping food costs down – cook when you want or eat out if you fancy. "Plus, you're just a 15-minute drive from all the big attractions in Costa Adeje like Aqualand, but without paying Costa Adeje prices. "It's like getting the full Tenerife experience with a nice discount just for staying a bit off the main tourist drag." The area also benefits from up to 10 hours of sunshine a day and also has a lovely beach. Tossa de Mar, Costa Brava = £508 This picturesque Costa Brava resort, instantly recognisable for its 12th-century castle, offers seven-night holidays at an average of £508 per person. "Tossa de Mar should be way more expensive than it is,' Marinkovic said. 9 Tossa de Mar, Costa Brava, features a 12th century castle Credit: Alamy "It boasts a stunning medieval old town, an impressive castle perched on the cliff, and gorgeous beaches all in one place. "It's perfect if you want more than just a beach flop – you can combine sunbathing with wandering through cobblestone streets, browsing local shops, stopping for tapas, and still have change left for dinner." Puerto de la Cruz, Tenerife = £512 This northern Tenerife town ranks eighth for affordability, with seven-night stays averaging around £512 per person. "Puerto de la Cruz gives you a completely different side of Tenerife for less," shared Marinkovic. "This is a proper Canarian town with a real local feel, not just a purpose-built resort. "The botanical gardens are gorgeous, and the sea pools designed by César Manrique are a must-visit. "It's a top pick for couples who want a romantic getaway without the ridiculous prices that usually come with more traditional romantic spots, and there are lovely hiking trails in the Orotava Valley just a short trip away." 9 Orotava Valley is only a short distance from Puerto de la Cruz and is home to multiple hiking trails Credit: Alamy Lloret de Mar, Costa Brava = £522 One of Costa Brava's most popular resorts ranks ninth for affordability, with seven-night holidays averaging £522 per person. Marinkovic said: "Lloret de Mar proves you don't have to pay through the nose for a popular spot. "Yes, it's famous for nightlife, but there's so much more to it – free activities, the beautiful Playa de Lloret beach, and even the Gothic Parish Church of Sant Roma that's worth a visit." The resort also has more than a party scene - it is great for families and couples too. There are self-catering options also, which is good for those trying to manage a budget. El Arenal, Majorca = £535 Rounding out the top ten, El Arenal offers seven-night summer escapes at an average of £535 per person. "El Arenal is brilliant for active beach-lovers who don't want to blow their budget,' Marinkovic explained. 9 In El Arenal, travellers will find Majorca's longest stretch of sand Credit: Alamy "You're right on Majorca's longest stretch of sand, and the water sports here are amazing – try paddleboarding, jet skiing, or parasailing for much less than you'd pay at fancier resorts." The destrination is a short distance from Palma, which means visitors can enjoy the city life whenever they want. For those with kids, there is also Majorca's biggest waterpark - Aqualand - nearby. Jet2 has also launched new holidays to one of Spain's cheapest cities known as the 'Garden of Europe' – with summer highs of 35C. Plus, the top holiday destinations in Spain that are offering hotels from £22pp a night.
The Irish Sun
20-05-2025
- The Irish Sun
From sea pools to hidden caves: Spain's cheapest beach destinations this summer
SPAIN still has some amazingly affordable holidays on offer this summer - and we've found the cheapest beach destinations. New research from summer 2025, with the Costa del Sol's Manilva taking the top spot as the cheapest resort. 9 Many Spanish resorts cost under £500 per person, for a week's break Credit: Alamy Steph Marinkovic, head of editorial at TravelSupermarket, said: " Spain continues to represent excellent value for holidaymakers, with our research revealing impressive affordability across mainland Spain, the Canaries, and the Balearics. "Holidaymakers might expect a huge resort to offer the best value, but this shows that getting away from the crowds and finding unique, authentic spots can mean travellers save big. "Across the top ten, we see a mix of established resort towns and lesser-known gems, giving budget-conscious travellers plenty of options for their Manilva, Costa del Sol = £371 The little-known municipality of Manilva has emerged as Spain's most Read more on Spain "What makes Manilva truly special is that it's actually three distinct experiences in one destination," explained Steph Marinkovic. "Visitors can base themselves in the traditional whitewashed pueblo up on the hill with its stunning coastal views, the more polished Puerto de la Duquesa marina area, or the authentic The area is full of vineyards, which according to Marinkovic, are one of Manilva's "best-kept secrets". "Locals have been growing Moscatel grapes here for generations, traditionally for sweet wines and raisins," she said. Most read in News Travel "Today, producers like Nilva are reviving the tradition with modern dry whites, and visitors can Explore Tenerife with The Sun's Best of Beaches There is also the Blue Flag-certified Sabinillas Beach just minutes away, the gorgeous 18th-century Church of Santa Ana in the pueblo, loads of affordable tapas bars, and a chilled marina with restaurants serving food from around the world. "Everything runs at that lovely, laid-back pace that's getting harder to find in the busier Costa del Silencio, Tenerife = £424 Tenerife's Costa del Silencio takes second place for affordability, with seven-night holidays averaging £424 per person. "Costa del Silencio offers exceptional value for those seeking summer sun in the "What's great about this spot is that it's much quieter than Tenerife's busy southern resorts, but it's super affordable. 9 In Costa del Silencio, Tenerife, there is the golden Montana Amarilla volcanic formation Credit: Alamy "You've got the amazing golden Montaña Amarilla volcanic formation right on your doorstep - one of Tenerife's most Instagram-worthy natural landmarks – without paying the premium prices you'd expect for such spectacular scenery." The destination is also known for Golf del Sur. S'illot, Majorca = £449 At £449 per person for a week-long stay, "S'illot gives you the best bang for your buck on the Balearic Islands this summer,' Marinkovic explained. "The secret advantage of this compact resort is its location - you can hop on a bike and explore Majorca's gorgeous eastern coastline on the cycle path that links several 9 Majorca boasts a cycle path along the eastern coastline, which links several towns Credit: Alamy "Stay here and you've basically got a budget-friendly launchpad to visit pricier spots like Cala Millor and Sa Coma without paying their premium rates." In particular, Marinkovic noted that the Calpe, Costa Blanca = £470 The former Marinkovic shared: "Calpe blends affordable holiday basics with genuine Spanish charm in the old town. "You can wander through the Moorish Quarter and check out the local fish market – the kind of authentic experiences that might cost a fortune elsewhere, but here they're just part of your daily holiday routine. 9 In Calpe, Costa Blanca, there is a local fish market to explore Credit: Alamy "And if you want a lively night out or family attractions, then it's just 15 miles south to reach Cala Ratjada, Majorca = £488 Nestled on Majorca's northeast coast, this pretty harbour town averages £488 per person for a seven-night stay. Marinkovic said: "Cala Ratjada is a total bargain for a place with such gorgeous beaches. "Savvy savers have cottoned on that you can enjoy the same crystal-clear waters and golden sands as the pricier northeastern Majorca spots without the hefty price tag. "The best part? You've got three completely different beaches within walking distance – Son Moll for easy swimming, stunning Cala Gat for stunning sunset photos, and the larger Cala Agulla that rarely gets crowded." She also shared that there is a bustling Callao Salvaje, Tenerife = £498 9 Callao Salvaje is only a 15-minute drive from Aqualand Credit: Alamy This Tenerife resort ranks sixth for affordability, with week-long holidays averaging £498 per person. "Callao Salvaje is Tenerife's hidden gem for bargain hunters," said Marinkovic. "The self-catering apartments here are brilliant for keeping food costs down – cook when you want or eat out if you fancy. "Plus, you're just a 15-minute drive from all the big attractions in Costa Adeje like "It's like getting the full Tenerife experience with a nice discount just for staying a bit off the main tourist drag." The area also benefits from up to 10 hours of sunshine a day and also has a lovely beach. Tossa de Mar, Costa Brava = £508 This picturesque "Tossa de Mar should be way more expensive than it is,' Marinkovic said. 9 Tossa de Mar, Costa Brava, features a 12th century castle Credit: Alamy "It boasts a stunning medieval old town, an impressive castle perched on the cliff, and gorgeous beaches all in one place. "It's perfect if you want more than just a beach flop – you can combine sunbathing with wandering through cobblestone streets, browsing local shops, stopping for tapas, and still have change left for dinner." Puerto de la Cruz, Tenerife = £512 This northern Tenerife town ranks eighth for affordability, with seven-night stays averaging around £512 per person. "Puerto de la Cruz gives you a completely different side of Tenerife for less," shared Marinkovic. "This is a proper Canarian town with a real local feel, not just a purpose-built resort. "The botanical gardens are gorgeous, and the sea pools designed by César Manrique are a must-visit. "It's a top pick for couples who want a romantic getaway without the ridiculous prices that usually come with more traditional 9 Orotava Valley is only a short distance from Puerto de la Cruz and is home to multiple hiking trails Credit: Alamy Lloret de Mar, Costa Brava = £522 One of Costa Brava's most popular resorts ranks ninth for affordability, with seven-night holidays averaging £522 per person. Marinkovic said: "Lloret de Mar proves you don't have to pay through the nose for a popular spot. "Yes, it's famous for Roma that's worth a visit." The resort also has more than a There are self-catering options also, which is good for those trying to manage a budget. El Arenal, Majorca = £535 Rounding out the top ten, El Arenal offers seven-night "El Arenal is brilliant for active beach-lovers who don't want to blow their budget,' Marinkovic explained. 9 In El Arenal, travellers will find Majorca's longest stretch of sand Credit: Alamy "You're right on Majorca's longest stretch of sand, and the water sports here are amazing – try paddleboarding, jet skiing, or parasailing for much less than you'd pay at fancier resorts." The destrination is a short distance from For those with kids, there is also Majorca's biggest waterpark - Aqualand - nearby. Plus, the 9 Most of the destinations are also kid-friendly Credit: Alamy
Yahoo
20-05-2025
- Business
- Yahoo
RBA interest rate decision live: Much-needed relief delivered but Aussies warned of 'uncertain' future
Hello and welcome to Yahoo Finance's live coverage of the RBA's interest rate decision. As expected, the central bank has cut the cash rate by 25 basis points to 3.85 per cent. A fair bit has changed since the last time the board met at the start of April, notably Donald Trump unleashing his Liberation Day tariffs, which sent shockwaves across global markets. And while the uncertainty continues, the RBA was not to be deterred with key indicators heading in the right direction for Australia. Where the RBA goes from here will of course be interesting, with the board keeping a close eye on employment and wage growth which could have impacts for mortgage holders in the long run. Follow along below as we bring you all the reaction to the decision. Let's take a look at the RBA's accompanying statement with its rate cut. It started positively by noting inflation is set to be where the RBA wants it for what they believe will be a long period, in that target band of 2 to 3 per cent. But once again 'uncertainty' was the key word from then on in, with Donald Trump's unpredictable tariffs and geopolitical issues fuelling those fears. And the RBA noted a "severe downside scenario", such as significant levies from the US, was still a concern, meaning the board remains cautious moving ahead. NAB has quickly leapt on the RBA's decision, announcing that it will pass on the full 0.25 per cent interest rate cut. "This provides some relief for those customers still dealing with cost of living challenges," NAB Group Executive for Personal Banking Ana Marinkovic said. Borrowers with a standard variable home loan can ask for the decrease from next Friday. Marinkovic has reminded mortgage holders that a cut is not automatically applied and must be requested through the app. 'More than 95 per cent of NAB customers opted to keep their repayments at the same level when rates last decreased, choosing to pay down their home loan quicker and save more in the long term,' Marinkovic said. A customer with a 30-year mortgage of $550,000 would save $83,000 in interest over the life of the loan and pay it off two years earlier if they kept repayments the same following a 0.25 per cent reduction in rates. We will be keeping an eye on how all the big banks react. You can follow on here. Well there we have it. The RBA, as expected, has cut the cash rate by 25 basis points. The interest rate is now 3.85 per cent and its the first time in exactly two years we've seen the rate with a 3 at the start. I'm sure plenty of you out there are hoping that 2 remains there for a while. OK, we're just half an hour from the RBA revealing their decision. We'll be bringing you the details of its accompanying statement, as well as all the key lines when Treasurer Jim Chalmers and RBA boss Michele Bullock front media. Stay tuned. One thing a rate cut in just under an hour's time will most likely do is see house prices drive up. Little Real Estate executive general manager of property services Anne Crarey said she was already seeing a trend of first-home buyers, along with investors, returning to the market ahead of the expected interest rate cuts. 'I think it's actually a very clever strategy because interest rates are on the decline and we are expecting a cut next week, it is going to move more purchases into the market,' she told Yahoo Finance. 'More competition could potentially drive prices higher. So I do think if you're ready to buy now, you should be buying now. 'The reduction of interest rates is going to most likely drive prices up.' In an update overseas, China's state banks are set to cut their deposit rates. It comes after Beijing ramped up stimulus measures in a bid to soften the economic fallout from Donald Trump's trade war. Economist Stephen Koukoulas said it was another reason the RBA should go hard later today. Have a look at his reasoning below. Homeowners are expecting to receive a bit of relief come 2.30pm, but Australians have been told not to wait around. 'While plenty of Australians will be waiting with crossed fingers and toes come 2.30pm, variable borrowers can do more than this," data insights director, Sally Tindall said. 'Call your bank and ask for a rate cut before the RBA hands down its decision – that way you could be in line for two cuts, rather than just one." While you've not long left, it's well worth a try. Tindall said it's also worth looking at refinancing to see if you can get a better deal. "Lenders are lining up to hand out competitive rates to new customers, often ahead of existing loyal ones, so it might be time to turn yourself into a sought after commodity by making the switch," she said. It's not what homeowners want to be thinking about right now, but one top economist says we need to be aware rate hikes could be on the horizon. Judo Bank chief economic advisor Warren Hogan says the 'window for interest rate cuts is closing" and believes a cut today would be the last for a while, before the rate could start to tick upwards again. 'We will probably get one this week but in the absence of a tariff-induced global shock, we are unlikely to see any more cuts after that,' Hogan wrote in an opinion piece for The Australian Financial Review. 'Indeed, the natural rhythm of the economic cycle suggests rate increases could be back in play before too long.' While there's plenty of predictions of a rate cut later on, five of Finder's 41 experts who gave their prediction on what will be delivered said the cash rate will be held at 4.1 per cent. Let's see their reasons why. Cameron Murray, University of Sydney: "Honestly, a bit of a guess. Inflation is in the target band. Not big changes globally. So where would be the economic impetus for change?" Jakob Madsen, University of Western Australia: "Not much has changed since last meeting." Mark Crosby, Monash University: "US policy randomness is settling into a pattern of reversals which make US and global slowdowns less likely." Mala Raghavan, University of Tasmania: "Though 'Trump Tariff' created lots of anxiety and uncertainty. Looking at some of Australia's key indicators, they appear to be moving in the right direction. "Inflation rate is within target i.e. 2.4% (12 months to the March quarter), while consumer spending remains unchanged and the selected living cost indexes are between 2.4% to 3.5% while business indicators are pointing to the right direction. Given these scenarios, I think the RBA will hold the cash rate this round." Malcolm Wood, Ord Minnett: "The labour market remains tight, driving above trend wages growth. With no productivity growth, this puts unit labour costs above the RBA's inflation target." By the end of last year, it felt like the whole country was calling for a rate cut. With predictions of a first rate cut in years repeatedly pushed back, homeowners eventually got one in February. But Commonwealth has revealed some surprising data, sharing that just 14 per cent of home loan customers reduced their home loan repayments. That meant most of their customers decided not to take the on-average $80 monthly saving, meaning things might not have been as tight as first thought. As Canstar points out, such a decision could significantly reduce the amount of interest paid on a mortgage. If homeowners with a $600k mortgage did so for four cuts of 25 basis points, they could save $89,000 in interest payments over the course of their mortgage, cutting four years off the time it takes to pay in the process. We previously asked our readers after February's cut how many more cuts they'd need to feel comfortable. The majority said they'd need four more, which is beyond what three of the big four banks are predicting. Have your say in the poll below if you haven't already. Let's just remind ourselves of the journey we've been on since the cash rate headed north from the record low of 0.1 per cent. As Finance Minister Katy Gallagher reiterated to the ABC this morning, it's certainly "been hard for households" over the last few years with the interest rate climbing to 4.35 per cent in an 18-month period. We spent over a year at that level, before it was finally cut in February. While Acting Prime Minister Richard Marles yesterday refused to offer his two cents on the RBA's impending decision, Treasurer Jim Chalmers has been suggesting we're in a great place for a rate cut. Following last week's employment data, he says Australians should be buoyed by recent developments. 'Amid all the uncertainty and volatility in the global economy, our labour market remains an encouraging source of strength,' Treasurer Chalmers said in a statement. 'Low unemployment and much lower inflation is a remarkable combination and means we are well placed and well prepared for the challenges coming at us from abroad.' It's certainly a confident stance from Chalmers, whose tone appears far more relaxed than before the election, where he denied pressuring the RBA to cut rates to give Australians relief before the nation voted on May 3. Nicola Powell, chief economist at property portal Domain, said an interest rate cut was pretty much a given and has pointed to two things – trimmed inflation and the US president. She says Donald Trump's tariffs policy has bolstered the case for a cut to support the Australian economy, amid an anticipated global slowdown. "Obviously, it's going to be at the forefront of [the RBA board's] mind, the impact that that is going to have on the domestic economy," Dr Powell told AAP. "When you look at trimmed mean inflation, it's now within their [target] band [of two to three per cent]. And we know that the RBA likes to really be guided by that trimmed mean inflation." Two data points were released last week that were technically good news for the country, but sparked concern from some experts about their impact on the Reserve Bank's decision-making. The Australian Bureau of Statistics showed wages jumped 0.9 per cent in the March quarter to 3.4 per cent, which came in just above forecasts of 0.8 per cent. That meant wages are up 1 per cent compared with headline inflation, which came in at 2.4 per cent for the same period. This lift in pay was mainly attributed to a boost in awards and in public service jobs. The following day, it was revealed that employment rose by 89,000 in the month of April, which thrashed expectations of a 20,000-person lift. The pressure is now on the Australian economy to show an increase in productivity, which RBA governor Michele Bullock has previously hinted is vital. 'If productivity didn't pick up, then that means that the rate of nominal wages growth that can be sustained and be in line with the inflation target is lower,' she said. Australia's current productivity growth is at minus 1.2 per cent. KPMG chief economist Brendan Rynne said the RBA could use productivity as an indicator that rates should be held. 'If productivity growth does not pick up, the inevitable question will be whether the strong wages growth will flow through to inflation,' he said. 'This upside risk, combined with the risks related to trade policies around the globe, will test the RBA at its next meeting.' Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said even though there was a "upside surprise" in wages, he still expects a 25 basis point reduction in the cash rate. Let's see what the other big banks are saying. While we just mentioned NAB are standing by a 50 basis points cut today, the other three believe a rate of 25 basis points will be delivered. And when it comes to long-term predictions, NAB is again the outlier, believing an aggressive cutting cycle from the RBA is coming. ANZ is the most reserved, believing it will take until 2026 for the cash rate to reach 3.35 per cent. Most market economists are predicting Australian homeowners will be delivered another rate cut of 25 basis points later today, despite employment data last week offering food for thought for the RBA board. If the 25 basis points cut is delivered today, which would be the second cut of that size in three meetings, it will be the first time we've seen the cash rate fall by 50 basis points since March 2020. Some are pushing for more though. Economist and Yahoo Finance contributor Stephen Koukoulas says it's time for the RBA to ditch its baby steps and go hard with a 50 basis points cut. NAB too is standing by its bold prediction Australians will be given a supersized 50 basis points cut. One of those hasn't been seen in 13 years, when the RBA delivered such a cut in take a look at the RBA's accompanying statement with its rate cut. It started positively by noting inflation is set to be where the RBA wants it for what they believe will be a long period, in that target band of 2 to 3 per cent. But once again 'uncertainty' was the key word from then on in, with Donald Trump's unpredictable tariffs and geopolitical issues fuelling those fears. And the RBA noted a "severe downside scenario", such as significant levies from the US, was still a concern, meaning the board remains cautious moving ahead. NAB has quickly leapt on the RBA's decision, announcing that it will pass on the full 0.25 per cent interest rate cut. "This provides some relief for those customers still dealing with cost of living challenges," NAB Group Executive for Personal Banking Ana Marinkovic said. Borrowers with a standard variable home loan can ask for the decrease from next Friday. Marinkovic has reminded mortgage holders that a cut is not automatically applied and must be requested through the app. 'More than 95 per cent of NAB customers opted to keep their repayments at the same level when rates last decreased, choosing to pay down their home loan quicker and save more in the long term,' Marinkovic said. A customer with a 30-year mortgage of $550,000 would save $83,000 in interest over the life of the loan and pay it off two years earlier if they kept repayments the same following a 0.25 per cent reduction in rates. We will be keeping an eye on how all the big banks react. You can follow on here. Well there we have it. The RBA, as expected, has cut the cash rate by 25 basis points. The interest rate is now 3.85 per cent and its the first time in exactly two years we've seen the rate with a 3 at the start. I'm sure plenty of you out there are hoping that 2 remains there for a while. OK, we're just half an hour from the RBA revealing their decision. We'll be bringing you the details of its accompanying statement, as well as all the key lines when Treasurer Jim Chalmers and RBA boss Michele Bullock front media. Stay tuned. One thing a rate cut in just under an hour's time will most likely do is see house prices drive up. Little Real Estate executive general manager of property services Anne Crarey said she was already seeing a trend of first-home buyers, along with investors, returning to the market ahead of the expected interest rate cuts. 'I think it's actually a very clever strategy because interest rates are on the decline and we are expecting a cut next week, it is going to move more purchases into the market,' she told Yahoo Finance. 'More competition could potentially drive prices higher. So I do think if you're ready to buy now, you should be buying now. 'The reduction of interest rates is going to most likely drive prices up.' In an update overseas, China's state banks are set to cut their deposit rates. It comes after Beijing ramped up stimulus measures in a bid to soften the economic fallout from Donald Trump's trade war. Economist Stephen Koukoulas said it was another reason the RBA should go hard later today. Have a look at his reasoning below. Homeowners are expecting to receive a bit of relief come 2.30pm, but Australians have been told not to wait around. 'While plenty of Australians will be waiting with crossed fingers and toes come 2.30pm, variable borrowers can do more than this," data insights director, Sally Tindall said. 'Call your bank and ask for a rate cut before the RBA hands down its decision – that way you could be in line for two cuts, rather than just one." While you've not long left, it's well worth a try. Tindall said it's also worth looking at refinancing to see if you can get a better deal. "Lenders are lining up to hand out competitive rates to new customers, often ahead of existing loyal ones, so it might be time to turn yourself into a sought after commodity by making the switch," she said. It's not what homeowners want to be thinking about right now, but one top economist says we need to be aware rate hikes could be on the horizon. Judo Bank chief economic advisor Warren Hogan says the 'window for interest rate cuts is closing" and believes a cut today would be the last for a while, before the rate could start to tick upwards again. 'We will probably get one this week but in the absence of a tariff-induced global shock, we are unlikely to see any more cuts after that,' Hogan wrote in an opinion piece for The Australian Financial Review. 'Indeed, the natural rhythm of the economic cycle suggests rate increases could be back in play before too long.' While there's plenty of predictions of a rate cut later on, five of Finder's 41 experts who gave their prediction on what will be delivered said the cash rate will be held at 4.1 per cent. Let's see their reasons why. Cameron Murray, University of Sydney: "Honestly, a bit of a guess. Inflation is in the target band. Not big changes globally. So where would be the economic impetus for change?" Jakob Madsen, University of Western Australia: "Not much has changed since last meeting." Mark Crosby, Monash University: "US policy randomness is settling into a pattern of reversals which make US and global slowdowns less likely." Mala Raghavan, University of Tasmania: "Though 'Trump Tariff' created lots of anxiety and uncertainty. Looking at some of Australia's key indicators, they appear to be moving in the right direction. "Inflation rate is within target i.e. 2.4% (12 months to the March quarter), while consumer spending remains unchanged and the selected living cost indexes are between 2.4% to 3.5% while business indicators are pointing to the right direction. Given these scenarios, I think the RBA will hold the cash rate this round." Malcolm Wood, Ord Minnett: "The labour market remains tight, driving above trend wages growth. With no productivity growth, this puts unit labour costs above the RBA's inflation target." By the end of last year, it felt like the whole country was calling for a rate cut. With predictions of a first rate cut in years repeatedly pushed back, homeowners eventually got one in February. But Commonwealth has revealed some surprising data, sharing that just 14 per cent of home loan customers reduced their home loan repayments. That meant most of their customers decided not to take the on-average $80 monthly saving, meaning things might not have been as tight as first thought. As Canstar points out, such a decision could significantly reduce the amount of interest paid on a mortgage. If homeowners with a $600k mortgage did so for four cuts of 25 basis points, they could save $89,000 in interest payments over the course of their mortgage, cutting four years off the time it takes to pay in the process. We previously asked our readers after February's cut how many more cuts they'd need to feel comfortable. The majority said they'd need four more, which is beyond what three of the big four banks are predicting. Have your say in the poll below if you haven't already. Let's just remind ourselves of the journey we've been on since the cash rate headed north from the record low of 0.1 per cent. As Finance Minister Katy Gallagher reiterated to the ABC this morning, it's certainly "been hard for households" over the last few years with the interest rate climbing to 4.35 per cent in an 18-month period. We spent over a year at that level, before it was finally cut in February. While Acting Prime Minister Richard Marles yesterday refused to offer his two cents on the RBA's impending decision, Treasurer Jim Chalmers has been suggesting we're in a great place for a rate cut. Following last week's employment data, he says Australians should be buoyed by recent developments. 'Amid all the uncertainty and volatility in the global economy, our labour market remains an encouraging source of strength,' Treasurer Chalmers said in a statement. 'Low unemployment and much lower inflation is a remarkable combination and means we are well placed and well prepared for the challenges coming at us from abroad.' It's certainly a confident stance from Chalmers, whose tone appears far more relaxed than before the election, where he denied pressuring the RBA to cut rates to give Australians relief before the nation voted on May 3. Nicola Powell, chief economist at property portal Domain, said an interest rate cut was pretty much a given and has pointed to two things – trimmed inflation and the US president. She says Donald Trump's tariffs policy has bolstered the case for a cut to support the Australian economy, amid an anticipated global slowdown. "Obviously, it's going to be at the forefront of [the RBA board's] mind, the impact that that is going to have on the domestic economy," Dr Powell told AAP. "When you look at trimmed mean inflation, it's now within their [target] band [of two to three per cent]. And we know that the RBA likes to really be guided by that trimmed mean inflation." Two data points were released last week that were technically good news for the country, but sparked concern from some experts about their impact on the Reserve Bank's decision-making. The Australian Bureau of Statistics showed wages jumped 0.9 per cent in the March quarter to 3.4 per cent, which came in just above forecasts of 0.8 per cent. That meant wages are up 1 per cent compared with headline inflation, which came in at 2.4 per cent for the same period. This lift in pay was mainly attributed to a boost in awards and in public service jobs. The following day, it was revealed that employment rose by 89,000 in the month of April, which thrashed expectations of a 20,000-person lift. The pressure is now on the Australian economy to show an increase in productivity, which RBA governor Michele Bullock has previously hinted is vital. 'If productivity didn't pick up, then that means that the rate of nominal wages growth that can be sustained and be in line with the inflation target is lower,' she said. Australia's current productivity growth is at minus 1.2 per cent. KPMG chief economist Brendan Rynne said the RBA could use productivity as an indicator that rates should be held. 'If productivity growth does not pick up, the inevitable question will be whether the strong wages growth will flow through to inflation,' he said. 'This upside risk, combined with the risks related to trade policies around the globe, will test the RBA at its next meeting.' Oxford Economics Australia head of macroeconomic forecasting Sean Langcake said even though there was a "upside surprise" in wages, he still expects a 25 basis point reduction in the cash rate. Let's see what the other big banks are saying. While we just mentioned NAB are standing by a 50 basis points cut today, the other three believe a rate of 25 basis points will be delivered. And when it comes to long-term predictions, NAB is again the outlier, believing an aggressive cutting cycle from the RBA is coming. ANZ is the most reserved, believing it will take until 2026 for the cash rate to reach 3.35 per cent. Most market economists are predicting Australian homeowners will be delivered another rate cut of 25 basis points later today, despite employment data last week offering food for thought for the RBA board. If the 25 basis points cut is delivered today, which would be the second cut of that size in three meetings, it will be the first time we've seen the cash rate fall by 50 basis points since March 2020. Some are pushing for more though. Economist and Yahoo Finance contributor Stephen Koukoulas says it's time for the RBA to ditch its baby steps and go hard with a 50 basis points cut. NAB too is standing by its bold prediction Australians will be given a supersized 50 basis points cut. One of those hasn't been seen in 13 years, when the RBA delivered such a cut in 2012.
