{"id":5382,"date":"2024-02-08T09:44:12","date_gmt":"2024-02-07T23:44:12","guid":{"rendered":"https:\/\/financialplus.com.au\/?p=5382"},"modified":"2024-02-08T09:44:12","modified_gmt":"2024-02-07T23:44:12","slug":"when-will-the-next-rba-cash-rate-call-be-made","status":"publish","type":"post","link":"https:\/\/financialplus.com.au\/when-will-the-next-rba-cash-rate-call-be-made\/","title":{"rendered":"When will the next RBA cash rate call be made?"},"content":{"rendered":"
Happy days! The Reserve Bank kept rates steady in February. But a shake-up in the number of times our central bank meets each year is raising questions about how long the rate pause will last. Here\u2019s what we could expect.<\/strong><\/p>\n It seems fitting that in a month known for Valentine\u2019s Day, the Reserve Bank of Australia (RBA) has shown borrowers some love by keeping the cash rate steady at 4.35%.<\/p>\n In reality though, the latest rate pause has nothing to do with romance or affection.<\/p>\n It\u2019s more to do with keeping a lid on rising living costs.<\/p>\n After months of steadily rising prices, inflation looks to be heading south \u2013\u00a0currently sitting at 4.1%<\/a>, down from 7.8% in December 2022.<\/p>\n That\u2019s exactly what the RBA has been aiming for with their interest rate hikes.<\/p>\n Long story short, home owners can breathe easy \u2013 for now at least.<\/p>\n RBA rate calls won\u2019t be as frequent in 2024<\/p>\n Aussies are used to RBA rate decisions being made on a monthly basis, with a break for the holiday season each January.<\/p>\n That\u2019s changing this year.<\/p>\n Instead of 11 meetings, the RBA will meet just eight times to decide interest rate movements, handing down their decision on the second day of:<\/p>\n \u2013 February 5-6 So, whatever rate decision is made in March, home owners need to live with it for almost two months until the RBA meets again in May.<\/p>\n As such,\u00a0some pundits believe<\/a>\u00a0fewer meetings will naturally lead to fewer rate movements. Farewell to back-to-back rate hikes every month, for example.<\/p>\n However, experts also warn it might lead to bigger increases or decreases as the RBA has fewer opportunities to move the needle.<\/p>\n And that\u2019s not to say individual lenders can\u2019t, or won\u2019t, change their home loan rates whenever they like, regardless of RBA rate decisions.<\/p>\n For example,\u00a0Mozo reports<\/a>\u00a0that a number of lenders lifted their variable rates in December 2023 despite the RBA keeping the cash rate steady.<\/p>\n While the February rate pause will be welcomed by borrowers, the\u00a0RBA has cautioned<\/a>\u00a0that further rate hikes \u201ccannot be ruled out\u201d, especially if inflation starts to climb again.<\/p>\n Even so, plenty of lenders including\u00a0NAB<\/a>, the\u00a0Commonwealth Bank<\/a>\u00a0and\u00a0Westpac<\/a>, expect to see interest rates fall this year.<\/p>\n There are no guarantees \u2013 a lot can happen over the next 12 months. But it does raise questions about whether now is a good time to buy a home, or if it makes sense to hold off until rates head lower.<\/p>\n On one hand, a drop in interest rates could boost your borrowing power.<\/p>\n The catch is that lower rates could stimulate home buying activity, potentially driving home prices higher.<\/p>\nBut when will the next cash rate decision be made?<\/h3>\n
\n\u2013 March 18-19
\n\u2013 May 6-7
\n\u2013 June 17-18
\n\u2013 August 5-6
\n\u2013 September 23-24
\n\u2013 November 4-5
\n\u2013 December 9-10<\/p>\nWhat do less frequent meetings mean for borrowers?<\/h3>\n
Buy now or wait for rates to fall?<\/h3>\n