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RBA reveals November 2024 cash rate call
The market predicts that the Reserve Bank will not cut interest rates until the new year. Find out, in this special announcement brought to you by Legal Home Loans, if conventional wisdom has foreshadowed the RBA’s decision.
Jerome Doraisamy
After holding the cash rate at 4.35 per cent for the entirety of 2024 thus far, including at its September board meeting, the Reserve Bank of Australia has decided to stay the course and hold the cash rate at 4.35 per cent.
In a statement, the RBA board said: “Sustainably returning inflation to target within a reasonable time frame remains the board’s highest priority. This is consistent with the RBA’s mandate for price stability and full employment. To date, longer-term inflation expectations have been consistent with the inflation target, and it is important that this remains the case.
“While headline inflation has declined substantially and will remain lower for a time, underlying inflation is more indicative of inflation momentum, and it remains too high. The November SMP forecasts suggest that it will be some time yet before inflation is sustainably in the target range and approaching the midpoint. This reinforces the need to remain vigilant to upside risks to inflation, and the board is not ruling anything in or out. Policy will need to be sufficiently restrictive until the board is confident that inflation is moving sustainably towards the target range.
“The board will continue to rely upon the data and the evolving assessment of risks to guide its decisions. In doing so, it will pay close attention to developments in the global economy and financial markets, trends in domestic demand, and the outlook for inflation and the labour market. The board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome.”
The RBA’s decision to hold the cash rate today (5 November), Legal Home Loans general manager Aylin Unsal told Lawyers Weekly, is “positive news”, providing stability for borrowers and aspiring home owners.
“With inflation now getting closer to the target for the RBA, signs are pointing towards a potential rate cut on the horizon. While we suspect that a cut is unlikely before Christmas, 2025 could bring positive news if inflation continues in its downward trend,” she said.
“Some banks have already reduced their fixed and variable mortgage rates/offers. This is likely a forward-looking move, driven by expectations that interest rates may come down in 2025.
“If you’ve been considering purchasing property, now could be an ideal time to get your pre-approval organised.
“As interest rates eventually drop, demand is expected to rise, making it a more competitive market. By acting now, you could stay ahead of potential price increases and take advantage of any future rate reductions.”
Legal professionals can get ahead of the competition by leveraging exclusive benefits, such as home loans with just a 10 per cent deposit and waived lenders mortgage insurance, Unsal continued.
“These advantages make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for lawyers to gauge what’s available for you,” she said.
Jerome Doraisamy
Jerome Doraisamy is the editor of Lawyers Weekly. A former lawyer, he has worked at Momentum Media as a journalist on Lawyers Weekly since February 2018, and has served as editor since March 2022. He is also the host of all five shows under The Lawyers Weekly Podcast Network, and has overseen the brand's audio medium growth from 4,000 downloads per month to over 60,000 downloads per month, making The Lawyers Weekly Show the most popular industry-specific podcast in Australia. Jerome is also the author of The Wellness Doctrines book series, an admitted solicitor in NSW, and a board director of Minds Count.
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