Struggling borrowers could potentially see an interest rate cut as early as next month, depending on certain conditions.
Canstar’s data insights director, Sally Tindall, explained that the Reserve Bank of Australia is closely watching upcoming labor force data, along with the quarterly Consumer Price Index results in just over two weeks.
If trimmed mean inflation is near the top of the RBA’s target band and services inflation improves, there could be a rate cut at the RBA’s February meeting.
Tindall also noted that banks might start adjusting fixed rates in January if the RBA’s February decision becomes clearer.
Despite a quiet start to the year with minimal rate changes, she expects that any adjustments will quickly be adopted by other banks.
