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In February, the Reserve Bank cut rates for the first time since November 2020. In this special announcement, brought to you by Legal Home Loans, find out if the RBA has again moved to provide cost-of-living relief for mortgage holders nationwide.
Decision
After cutting the cash rate by 25 basis points at its February 2025 meeting, the board of the Reserve Bank of Australia has today (Tuesday, 1 April) decided to hold the cash rate at its current level.
In a statement, the board said: “Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and supply closer towards balance. Recent information suggests that underlying inflation continues to ease in line with the most recent forecasts published in the February Statement on Monetary Policy. Nevertheless, the board needs to be confident that this progress will continue so that inflation returns to the midpoint of the target band on a sustainable basis. It is therefore cautious about the outlook.”
There are notable uncertainties about the outlook for domestic economic activity and inflation, the board detailed.
“The central projection is for growth in household consumption to continue to increase as income growth rises. But there is a risk that any pick-up in consumption is slower than expected, resulting in continued subdued output growth and a sharper deterioration in the labour market than currently expected. Alternatively, labour market outcomes may prove stronger than expected, given the signal from a range of leading indicators.”
Hold
In conversation with Lawyers Weekly, Legal Home Loans general manager Aylin Unsal said the decision to hold the cash rate will continue to provide stability for borrowers.
“The current average interest rate range is now 5.4 per cent to 5.9 per cent. If your rate is still over 6 per cent, reach out to our lending experts here today,” she said.
“If you didn’t receive a rate reduction from the February cash rate cut, make sure to get in contact with your lender as soon as possible.”
If you’re considering purchasing a property, Unsal continued, now is a good time to get your pre-approval in place.
“Having pre-approval ready ensures you can move quickly when you find the right property.
“Don’t forget, legal professionals can access certain market advantages, such as home loans with just a 10 per cent deposit and waived lenders mortgage insurance. These benefits can make entering the property market more attainable and realistic for the cohort,” she said.
“It’s best to speak to a specialist broker for lawyers to gauge what’s best for you.”
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Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
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Jerome Doraisamy
