RBA Cash Rate Announcement September 2024

The Reserve Bank of Australia (RBA) kept the cash rate on hold at 4.35 per cent at today’s meeting. The latest inflation data is set to be released on 25 September, and today’s decision seems to confirm that inflation in Australia continues to slow.

Read today’s official statement on the RBA’s website. The board's next cash rate announcement will be on 5 November.

Homeowners hoping for the RBA to continue its run of cash rate holds have had another reprieve today, but a near-term cut seems unlikely.

Inflation has fallen substantially since its peak in 2022, but there’s still some way to go to get to where the RBA wants it – within the 2–3 per cent target range.

“Inflation in underlying terms remains too high, and the latest projections show that it will be some time yet before inflation is sustainably in the target range,” the RBA said in a recent statement.

“Policy will need to be sufficiently restrictive until the Board is confident that inflation is moving sustainably towards the target range.”

The RBA expects inflation to return to the target range late in 2025 and approach the midpoint in 2026.

As for a rate cut? Many experts, along with leading industry forecaster Oxford Economics Australia, don’t expect the RBA to cut the cash rate until the second quarter of 2025.

With interest rates on hold, now is the time to review your home loan closely.

To find out whether you could be getting a more competitive rate elsewhere, chat to us. You may also be able to switch to a loan with interest-saving features that could help you get ahead faster.

To explore your options, get in touch today.

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