18/02/2025
The Reserve Bank of Australia (RBA) has kicked off 2025 with some great news for homeowners. The cash rate has been slashed 0.25 percentage points to 4.10 per cent. The announcement comes after better-than-expected inflation data showed that inflation is heading towards the RBA’s targets.
Cash rate dropped to 4.10% Decreased by 25 basis points.
All of the Big Four banks had anticipated today’s decision, and now borrowers will be closely watching lenders to see whether they pass on the cash rate cut.
If passed on in full, it’s estimated borrowers with a $600,000 home loan will save $92 a month, while those with a $750,000 loan will pocket $115 a month.
For a borrower with a $1 million home loan, the cash rate cut is expected to save them around $153 per month.
At its meeting today, the Board decided to lower the cash rate target to 4.10 per cent and the interest rate paid on Exchange Settlement balances to 4 per cent.
