Homeowners hoping for a Cup Day interest rate cut are expected to be left frustrated today with the Reserve Bank expected to keep the cash rate on hold in its November meeting.
This year, the RBA has slashed interest rates from 4.35 per cent to 3.6 per cent and until recently, hopes were high for another cut by the end of 2025.
But stubborn inflation and a relatively steady labour market offer little incentive for the bank to push further ahead after leaving rates on hold in the board’s September meeting.
Homeowners hoping for a Cup Day interest rate cut are expected to be left frustrated today with the Reserve Bank expected to keep the cash rate on hold. (Nine)
A Finder survey released at the end of October found that the vast majority of experts expected the bank to keep its finger on the pause button in November, and even likely in December.
That’s after the consumer price index rose 1.3 per cent in the September quarter, according to Australian Bureau of Statistics data.
But the verdict isn’t universal.
Scott O’Neill, chief executive of property investment services company Rethink Group is predicting a 0.25 per cent cut to 3.35 per cent.
“It’s a line-ball decision, but I’m backing a cut,” O’Neill said.
“Inflation has landed squarely in the target range at 2.1 per cent headline (2.7 per cent trimmed mean), and with the economy showing clear signs of softening, the RBA has room to move.”
Homeowners will have to keep tightening their belts. (Dion Georgopoulos / Australian Financial Review)
The RBA board’s decision will be handed down at 2.30pm AEDT.
The bank’s final board meeting for the year will take place in December.
However, most experts are now predicting a rate cut to be delayed until partway through 2026.
