The RBA has released their latest cash rate announcement
- Posted By Suman Limbu
The Reserve Bank of Australia (RBA) has implemented a second interest rate cut for 2025, lowering the cash rate by 0.25% to 3.85%. This move reflects easing inflation, with headline inflation down to 2.4% and core inflation at 2.9%, returning to the RBA’s target range for the first time since 2021.
"How does this impact you if you're looking to buy, rent, sell, or invest in property today?"
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Buyers:
Lower rates reduce mortgage costs and boost borrowing capacity. Lenders are expected to pass on the cut, making it easier for buyers—especially first-home buyers—to enter the market. -
Renters:
While rent relief will take time, rising vacancy rates (now 1.3%) and easing rental growth suggest pressure may be beginning to ease. -
Sellers:
Falling rates could fuel buyer demand, boosting home prices and sales activity. All capital cities recorded home value growth in April. -
Investors:
Lower mortgage costs improve cash flow. Though rent growth is slowing, yields remain strong in affordable cities. Refinancing and market re-entry are on the rise.
This rate cut signals a potential shift in Australia’s property landscape—offering buyers more access, easing pressure for renters, and creating new momentumfor sellers and investors.