RBA Keeps Rates Steady – What’s Next for Homeowners?
Great news for borrowers! The Reserve Bank of Australia (RBA) has kept the cash rate steady at 4.35% in February, offering some relief amidst ongoing cost-of-living pressures. But with fewer RBA meetings in 2024, what does this mean for interest rates moving forward? Let’s break it down.
A Welcome Pause for Homeowners
February might be the month of love, but homeowners are feeling the affection for an entirely different reason—steady interest rates.
After months of aggressive hikes aimed at controlling inflation, we’re finally seeing some positive movement. Inflation is now sitting at 4.1%, significantly down from 7.8% in December 2022. This is exactly what the RBA has been aiming for. If you are looking to find out what your repayments change to go to our calculators page here
So, what does this mean for you? For now, homeowners can breathe a little easier, but uncertainty remains about when rates might move again.
RBA Meetings Less Frequent in 2024
One big change this year is how often the RBA will meet to make interest rate decisions. Instead of monthly meetings, there will be just eight meetings throughout the year:
📅 Key RBA Meeting Dates:
- February 5-6
- March 18-19
- May 6-7
- June 17-18
- August 5-6
- September 23-24
- November 4-5
- December 9-10
What Fewer Meetings Mean for Borrowers
With fewer meetings, any rate decision made in March will remain unchanged for almost two months until May.
Some experts believe this could mean fewer overall rate changes, reducing the risk of consecutive monthly increases. However, there’s also speculation that the RBA may introduce larger hikes or cuts when they do act, given fewer opportunities to tweak policy.
And remember, lenders don’t have to wait for RBA decisions to adjust their rates. In fact, Mozo reports that some lenders increased their variable rates in December 2023, despite the RBA holding steady.
Should You Buy Now or Wait for Rates to Drop?
While the February pause is good news, the RBA has cautioned that further rate hikes “cannot be ruled out” if inflation rises again.
Still, some major lenders—including NAB, Commonwealth Bank, and Westpac—forecast that interest rates could fall this year.
The big question: Do you buy now or wait?
- Lower rates could boost your borrowing power, making home loans more affordable.
- However, cheaper finance could spark demand, driving home prices up.
CoreLogic warns that if this happens, lenders may tighten borrowing conditions, potentially changing loan-to-value ratios.
Finding the Right Time to Buy
Rather than trying to time the market perfectly, the best time to buy is when you feel financially ready.
Want to know your borrowing power and whether now is the right time to take the leap? Speak to us today or reach out to us on our contact us page
We’ll crunch the numbers for you, helping you determine what you can afford and find the best loan options for your situation.
📞 Get in touch with us today to explore your home loan options!
Amended by Craig McDonald 07/06/2025
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