Will interest rates fall?

As reported in the Toowoomba Chronicle on 30 January 2025 all of the Big 4 Banks are expecting a rate cut in February when the Reserve Bank has its first meeting of the year.

Now we have been hearing this for about a year now, so I would not be holding my breath.

NAB are tipping that there will be a 25 basis point cut in February.  NAB go further by saying they expect by saying that they expect a reduction of 75 to 100 basis points in 2025.

NAB predict that by this time next year the cash rate to be 3.1% down from 4.35%.

Other media outlets are reporting that the inflation is down, but not within the Reserve Banks targets and if you rely on previous comments from the Reserve Bank Governor that would suggest that rates will hold.

It appears that all the same crystal ball gazing is going on leading up to the first meeting of the Reserve Bank.

The whole country would really appreciate a rate cut, but I would not be holding my breath.