The RBA cut the offical cash rate to 3.85%
The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points, bringing it down to 3.85% – and offering some welcome relief for borrowers.
It’s the second rate cut this year, following a lengthy run of hikes between 2022 and 2023.
Encouragingly, inflation now appears to be under control, with annual trimmed mean inflation at 2.9% and headline inflation at 2.4% during the March quarter – both comfortably within the RBA’s target range.
While global risks remain – including uncertainty around tariffs and geopolitical tensions – the RBA said falling inflation and contained wage growth provided scope to ease policy.
What does that mean for borrowers? Lenders have already begun passing the cut on, with the big four banks lowering their variable mortgage rates. According to Canstar, monthly repayments on a $500,000 loan could fall by around $76.
If you’ve been waiting to refinance, or thinking about buying, now could be a good time to explore your options.
About the author – Alex Veljancevski is a Sydney mortgage broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.
