Why Interest Rate Cuts May Be Delayed Until 2025—And What You Can Do Now
The Wait for Rate Cuts Continues
Put the party pies on hold—the much-anticipated interest rate cuts may not arrive until 2025.
June saw the Reserve Bank of Australia (RBA) keep the cash rate unchanged, marking another month of higher borrowing costs for homeowners. With the next rate decision due in August, home loan borrowers face at least two more months before any potential changes.
But what happened to the rate cuts predicted for 2024?
Why Interest Rates Aren’t Falling Yet
Inflation Is Still Stubbornly High
Earlier this year, major banks such as Commonwealth Bank and Westpac forecasted rate cuts as early as September 2024. However, those predictions now seem less likely due to persistent inflation.
💡 The RBA’s target range for inflation is 2-3%, but the current rate sits at 3.6%—close, but not quite there yet.
📌 Read more about the RBA’s inflation targets on their official website: RBA Inflation Overview.
When Will Rates Start to Fall?
Expert Predictions
The RBA expects it will take time for inflation to stabilize.
🔹 Westpac & NAB predict rates will drop from December 2024
🔹 CommBank initially expected November 2024 cuts but has since grown doubtful
🔹 ANZ & Citi economists don’t anticipate any rate cuts until 2025
💡 Even if the RBA announces a December 2024 cut, homeowners may not see mortgage rate reductions until early 2025.
🔎 Stay updated with rate forecasts via the Reserve Bank of Australia’s announcements: RBA Rate Decisions.
🚨 A word of caution: The RBA stated in its June meeting that it’s “not ruling anything in or out”, meaning a rate hike is still a possibility.
How to Manage Higher Interest Rates
Smart Strategies for Borrowers
If rate cuts remain delayed, taking proactive financial steps can help you reduce home loan costs.
✅ Review household spending – Identify areas where you can cut back
✅ Use an offset account – Extra savings in your offset can reduce interest paid
✅ Leverage upcoming tax cuts – From July 1, 13.6 million Australians will benefit from tax reductions
💡 Learn more about upcoming tax changes at the Australian Taxation Office: ATO Tax Updates.
Should You Refinance Instead of Waiting?
Explore Home Loan Refinancing Now
If you’re unsure whether your current mortgage is still competitive, don’t wait for RBA rate cuts—you may be able to refinance and save today.
📌 Rising property values mean some homeowners are in a strong position to refinance.
💰 Want to know your refinancing options? Visit our dedicated refinancing page here: CBM Mortgages Refinancing Guide.
📞 Speak to CBM Mortgages today for expert guidance on trimming your loan rate and managing repayments without waiting for the RBA.
Read one of our blog posts on how much you can save by refinancing here or our log on how to buy the perfect property here
Disclaimer
This article provides general information only and does not constitute financial advice. Always consult a qualified financial advisor or mortgage broker to assess your personal situation before making any financial decisions.
Written by Craig McDonald 14/06/2025
