As the Reserve Bank of Australia approaches its final decision for 2024, homeowners are eagerly awaiting signs of relief from rising interest rates. The cash rate has held steady at 4.35% for over a year, applying pressure on millions of mortgage holders grappling with the cost-of-living crisis.
Australia’s big four banks—Commonwealth Bank, Westpac, NAB, and ANZ—remain divided on when the Reserve Bank will begin cutting rates in 2025. While none predict cuts in December, their forecasts for next year vary:
- Commonwealth Bank expects the first rate cut as early as February 2025, with five cuts anticipated to bring the cash rate down to 3.10%.
- Westpac, NAB, and ANZ forecast the first cut in May 2025, though their predictions on the final rate differ.
Westpac and NAB align on a cash rate of 3.10% after five cuts, while ANZ anticipates only two cuts, bringing the rate to 3.85%. This disparity underscores the uncertainty around the Reserve Bank’s future strategy and the potential timing of relief for borrowers.