Cash rate update for June 2024

The Reserve Bank of Australia (RBA) has just announced a hold on the cash rate of 4.35% at today’s meeting.

This decision reflects the RBA’s cautious approach and intention to monitor data amidst a backdrop of mixed economic indicators:

  • Inflationary pressure continues with the March Consumer Price Index (CPI) coming in at 3.6%, which was higher than expected.
  • Unemployment fell to 4% in May, reflecting continued strong labour markets.
  • Gross Domestic Product (GDP), a measure of economic growth, rose by only 0.1% in the March quarter and 1.1% (seasonally adjusted) for the year. Outside of the COVID period, this is one of the lowest rates of growth recorded in the last 20 years.

The announcement to hold rates coincides with predictions from the big four banks that the RBA won’t move to reduce rates in the near future, with the earliest estimate of a rate cut from that cohort being November 2024.

Today’s decision underscores the importance of staying informed about economic developments and their potential impact on your finances.

Whether you’re considering buying a new home, refinancing your mortgage to secure better terms or exploring avenues for property investment, now could be an advantageous time to review your financial strategy.

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