RBA Cash Rate Announcement December 2024

At its final meeting of 2024, the Reserve Bank of Australia (RBA) kept the cash rate on hold at 4.35 per cent. The decision was widely expected, with headline inflation trending lower. The numbers are largely pointing towards a possible cash rate cut in the first half of 2025.

That’s a wrap on cash rate decisions for 2024. All in all, the cash rate remained flat this year.

The latest figures from the Australian Bureau of Statistics were promising, showing annual CPI inflation was 2.8 per cent in the September quarter, significantly down from 3.8 per cent in the June quarter. This was largely due to a fall in prices for electricity (thanks to Energy Bill Relief Fund rebates) and automotive fuel.

However, underlying inflation (as represented by the trimmed mean) was still 3.5 per cent over the year to the September quarter.

“While headline inflation has declined substantially and will remain lower for a time, underlying inflation is more indicative of inflation momentum, and it remains too high,” the RBA said in a recent post-meeting statement.

The next CPI figures are set to be released on January 29, and all eyes will be on the numbers before the RBA’s first meeting of 2025 on February 17-18.

Only one of the big four banks believes the RBA will cut the cash rate in February – all of the others are banking on a cash rate cut in May.

With the year fast coming to an end, now is the time to review your home loan and make sure it’s still competitive and meets your needs.

To explore your options, get in touch today.

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