While it didn’t rule out further interest rate rises – inflation is still higher than the RBA likes it to be – commentators tend to be tipping a holding pattern for the months to come.
The real speculation is around when will it start to drop interest rates?
“The good news for borrowers — who’ve copped the double-whammy of high inflation and high interest rates — is that cooling inflation could allow the RBA to start cutting interest rates from the middle of 2024,” reports realestate.com.au.
“The RBA’s forecast is based on the assumption that interest rates will be cut at least four times in the next two years as inflation approaches the desired range.”
That’s music to the ears of mortgage holders and potential buyers.
But as Aussies mortgage holders have come to learn in recent years, interest rate forecasting is very easy to get horribly wrong.
When planning your property budget, get independent financial advice, and discuss what kind of interest rate ‘buffer’ you should factor into your repayment budget so you can breathe easy whichever way the interest rate wind blows this year.
Looking to buy? View our current listings for sale.