Why has the Reserve Bank not dropped interest rates?

New Zealand has dropped interest rates.  The US, UK and parts of Europe have dropped interest rates.

Why won’t Australia?

As reported by realestate.com on 14 October 2024, the Reserve Bank Governor has said that she will not be swayed by foreign economies.

The Reserve Bank appears to be taken a conservative approach.  Maybe that is because inflation has only recently come into the acceptable levels and the approach of the Reserve Bank in the past may be a cautionary tale for the new Reserve Bank Governor.

Most of the Banks have already moved and lowered fixed rates for home loans.  This is a strong indicator that variable rates will be reduced as well.

For all the mortgage holders out there an interest rate cut could not come any sooner.

Here’s hoping that in the November meeting of the RBA, with new figures being released at the end of October that the Reserve Bank Governor might give us something in the Christmas stocking… and not a lump of coal.