14/08/2024
A tip-toe in the direction of lower interest rates but good news nonetheless.
In what will be some very welcome good news for businesses and households alike, the Reserve Bank has dropped the official cash rate from 5.5% to 5.25%.
This is the first drop since March 2020 when it was dropped to 0.25%.
While this is a small move towards lower rates (and months earlier than most expected), there is still a long road to go in managing inflation, unemployment and overall economic activity. So the hard work isn't done and it is possible this could be the only drop until early 2025, with the rate till then still being the highest since 2008.