RBA on hold, but ....
- pdavey100
- Feb 8, 2024
- 1 min read
The Reserve Bank of Australia (RBA) held the cash rate at 4.35%, as expected.
They have however suggested that further rate rises may happen if inflation still holds above 4%.
The market had been expecting an about-turn in rates sometime in 2024.
Now, of course the RBA has said this. The very moment they start to mention "rate cuts" then the market is off to the races and mortgage rates will fall. The RBA don't want this to happen, as it would undo a lot of the work put in over 2022 and 2023 to bring inflation under control. What the RBA wants to do is keep the market on edge and not get complacent around an expectation of rate cuts.
In my opinion there will be no more rate rises in 2024, but rate cuts probably won't happen until late this year at the earliest.
Variable rate loans are where you want to be, unless you can get a 1-year fixed rate for less than 6%.
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