Recent ABS data showed a slight increase in annual inflation to 3.5% in March, after a period of stability. This uptick suggests that inflation pressures, while lower than the previous year’s peak, remain persistent.
“These CPI figures are a timely reminder not to bank on a rate cut before it hits your bank account,” said Sally Tindall (pictured above), RateCity.com.au’s research director.
The uncertainty around the timing and extent of rate cuts can significantly impact homeowners, especially those with considerable mortgage debts. With predictions varying from no rate cuts to three in 2024, the financial implications for borrowers are substantial.
“Borrowers banking on a handful of RBA rate cuts this year should shift their focus to making sure they can meet their current mortgage repayments for the remainder of 2024,” Tindall said.
In light of ongoing inflation and rate cut uncertainties, Tindall advised borrowers to actively engage with their banks to secure better rates.
“If you want a rate cut, understand that right now, the ball is in your court, not the RBA’s,” she said. “The banks are still in the mood to negotiate, and you might find you nab your own personal rate cut before the month’s out.”
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