Interest rate forecast

With recent rate reductions seen in the USA, it looks more hopeful that Australia will soon follow suit.

Most forecasts suggest that rate reductions will likely begin between late 2024 and mid-2025.

Here’s a quick breakdown of the big 4’s predictions:

• ANZ: First cut around February 2025, with rates dropping to 3.60% by the end of the year.

• CommBank: First cut around December 2024, with rates falling to 3.10% by the end of 2025.

• NAB: First cut around May 2025, and rates will settle at 3.60% by year-end.

• Westpac: First cut around February 2025, with rates eventually dropping to 3.10% by the end of 2025.

The next major update is on November 5th when the RBA has it’s monthly meeting.