With interest rates the main concern for Australian home owners and no change to the cash rate since November 2023, in this article we take a look at the big 4 banks predictions for what we may expect in the coming months.

National Australia Bank (NAB) had previously predicted the first rate cut to come in May2025 however after recent figures confirmed that headline inflation has now fallen to its lowest level since August 2021, NAB have brought their prediction forward, expecting a rate cut in February 2025 with a total reduction in the cash rate of 0.75% by the end of2025.

Commonwealth Bank (CBA) have forecast a rate cut as early as December this year with a total reduction in the cash rate of 1.25% by the end of 2025.

For well over a year, ANZ anticipated that the first round of RBA cash rate cuts would occur in November 2024. Due to the later than expected start in the easing of inflation, ANZ’s current position is for a rate cut in February 2025 with a total reduction in the cash rate of 0.75% by the end of 2025.

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Westpac predicts that the first rate cut will come in February 2025 with a total reduction in the cash rate of 1.25% by the end of 2025.

With the outlook for core inflation still highly uncertain, the Reserve Bank of Australia (RBA) have cautioned that there is no certainty if and when the cash rate will come down and have not ruled out the chance of another increase, should that be required to return inflation sustainably back to target by 2026.

The next RBA cash rate announcement will be on Tuesday 5^thNovember. If you would like to discuss your home loan rate, give us a call or fill out the enquiry form and we'll get back to you asap.

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