What This Means for Homeowners and Buyers

Michael Hannant
Apr 1
3 min read

The Reserve Bank of Australia has held the cash rate at 4.1%, a decision that comes as no surprise to many economists. With inflation gradually easing but still sitting above the RBA’s target range, today’s move signals a cautious yet steady approach.

While some borrowers were hoping for a rate cut, experts suggest it may not be far away. Many are predicting the first cut could come later this year, potentially as early as August or September, depending on economic conditions.

Why Did the RBA Hold?

The RBA’s main goal is to bring inflation back within its target range of 2–3%. Recent data shows inflation is slowing, thanks to easing supply chain pressures and reduced consumer spending. However, core inflation (particularly in services) remains sticky, prompting the RBA to keep rates steady for now.

The central bank is also watching wage growth closely, as stronger wage increases could add inflationary pressure. With global economic uncertainty and shifting market conditions, today’s decision allows more time to assess whether inflation is on track before making any major changes.

What This Means for Homeowners

For those with a variable rate home loan, today’s decision means your repayments remain the same for now. However, with potential cuts on the horizon, now is a great time to review your loan structure. Ensuring you have a competitive rate now could put you in a strong position if rates do start to fall later in the year.

Fixed rate borrowers who locked in during the ultra low rate period of 2020 – 2021 may still be approaching their fixed rate expiry. If that’s you, now is the time to prepare for what your repayments might look like once you transition to a variable rate. Reviewing your options early could help you avoid bill shock when your fixed term ends.

What This Means for Buyers

The property market continues to show resilience, with demand remaining strong despite high interest rates. While today's rate hold provides stability, a future cut could boost borrowing power, making home loans more affordable. This means more buyers may enter the market later this year, increasing competition.

If you’re looking to buy, now is the time to get your finances in order. Having pre-approval in place and understanding your borrowing capacity will put you in a strong position when conditions shift. Those who plan ahead could be ready to move quickly when rates do eventually drop.

Looking Ahead

While rates remain steady today, the conversation is shifting towards when the first cut will happen, rather than if. The next few months will be crucial in determining how quickly inflation eases and whether the RBA will move to lower rates before the end of 2025.

For homeowners, now is an ideal time to review your loan, check if you're on a competitive rate, and plan for future changes. For buyers, preparing now could mean securing a great opportunity before competition increases.

Exciting News Coming Soon!

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Mike.