Economy

While the recent interest rate cuts will offer relief for borrowers, reports claim arrears are likely to remain unchanged.

Following the Reserve Bank’s decision to reduce the cash rate by 25 bps, industry heads have weighed in to offer some perspective.

At its press conference following the cash rate call, the RBA has said households are in a good position and financial stability is looking positive.

The central bank has revealed its cash rate target at the third Monetary Policy Board meeting of 2025.

Commentators have unanimously agreed that the central bank will continue to ease interest rates, with the official cash rate set to drop to levels not seen since mid-2023.

Data from Commonwealth Bank (CBA) has revealed that following the February rate cut, some customers adjusted direct debit payments, putting some extra cash in their pockets.

Despite global economic uncertainty, lenders are still eager to finance Australian real estate.

Renters led annual household spending growth in April, with modest overall gains showing a cautious consumer recovery across Australia.

The latest ABS data on Australia’s jobs and wages will likely be put on the backburner for the central bank as commentators still expect another rate cut for the May meeting.

Investor loan commitments have recorded a decline during the March quarter, new ABS data has shown.