RBA Cash Rate Announcement August 2024

The Reserve Bank of Australia (RBA) kept the cash rate on hold at 4.35 per cent at its latest meeting.

Read today’s official statement on the RBA’s website. The board meets next on 23-24 September.

Homeowners were waiting with bated breath for the release of the latest inflation figures last week, and the news was promising.

According to the Australian Bureau of Statistics, the consumer price index (CPI) rose by 1 per cent in the second quarter of 2024, bringing annual headline inflation to 3.8 per cent.

While this was above the March quarter figure of 3.6 per cent, an important measure of underlying inflation (the trimmed mean) declined for a sixth quarter in a row, signalling inflation is still trending down.

The RBA is focused on getting inflation within the 2 to 3 per cent target range, anticipated to happen in the second half of 2025.

Many economists had anticipated the next cash rate move by the RBA would be a cut, with some saying this could come as early as November. Others think next year is more likely.

Treasurer Jim Chalmers said the inflation figures were broadly in line with the RBA’s forecasts and underlying inflation was continuing to moderate.

“Inflation is still sticky and stubborn across our economy, and more persistent than we would like, but the June quarter is the sixth consecutive quarter of lower annual trimmed mean inflation in Australia,” he said.

If it’s been a while since you’ve reviewed your home loan, now is the time to give it a health check.

We can compare the different loan options available to you and research whether you could be getting a more competitive interest rate elsewhere.

We may even be able to line you up with a mortgage with interest-saving features like an offset account or redraw facility that could reduce the amount of interest paid over the course of your loan.

To explore your options, get in touch today.

Need help understanding what this announcement means for you? Contact us today.