Rate Cuts!
Posted by: r23
19th May 2025 10:39pm
How many interest rates cuts in FY 2025 are we expecting folks ? What impact will this have on housing prices ? Share your thoughts..
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Comments 19
baccus
Markets are currently pricing in three RBA rate cuts for FY2025, a shift that reflects increasing confidence in inflation trending back within the target band and a softening labour market. If delivered, this easing cycle should act as a strong tailwind for housing, particularly in the second half of the fiscal year. Lower borrowing costs are likely to reignite buyer demand, especially among first-home buyers and upgraders previously sidelined by affordability constraints. With supply still tight across most capital cities, these cuts could reaccelerate price growth, reinforcing the resilience of Australia's housing market and potentially pushing national dwelling values to new record highs.
Sil sil
Housing, what house? Born and raised here means I cannot afford to buy a house near my parents, as they age its a big concern and families are being separated. That's a disaster
intelligent
Two more this year, but it won't help ease the housing prices as more and more people are coming into Australia for economic benefits
GreenLego
The market is pricing in 3 more rate cuts for calendar year 2025:
https://www.asx.com.au/markets/trade-our-derivatives-market/futures-market/rba-rate-tracker
But it's tricky considering the uncertainty with the US. With the lack of confidence in the US, the bond yields are going higher. Australian rates can't veer too far from the US. If the Aus rates are much lower than the US, investor will pull money out of Aus and put it in US to get the higher yield. This will lower the A$ currency. Which will mean a lot of things will get more expensive here.
RBA do need to look at the local economy and it looks like the growth is not as high as required, so rates will be cut to encourage growth, but at the same time, they also need to look at rates overseas to make sure that Aus rates are not too low comparatively to avoid devaluation in the A$ currency.
Teegan
Hoping for another two cuts this year as it will assist with my mortgage repayments. Unfortunately cost of living including groceries, power prices etc are still so high just living is a struggle for so many people still.
wil32383410
No idea
chocogirl
Not sure if there will be another one or two this year in addition to the two already given. Prices of everything just seem to go up and so there is no relief from cost of living pressures.
Sadunika3260
As of June 2025, the Reserve Bank of Australia (RBA) has implemented two interest rate cuts this year, reducing the cash rate to 3.85%. Economists and financial markets anticipate further easing, with projections suggesting at least two to three additional 25 basis point cuts by the end of the year, potentially bringing the cash rate down to between 3.10% and 3.35% .
Thanu
Interest goes down prices go up
suzukisue
Two down and I think they said we should expect at least two more this year.
I don't know how it will affect house prices, but i/ welcome the cuts, as it will help us to save on our mortgage.
cazter
Not sure how many interest rate cuts we will have but the problem in Australia is that the cost of living is so high that any cuts aren't really helping. Also the housing prices plus rental prices continue to rise due to demand.
site77
While the anticipated rate cuts in 2025 may provide some relief to borrowers and stimulate housing market activity, the overall impact on home prices will depend on various factors, including supply constraints, construction costs, and broader economic conditions. Potential buyers and investors should remain vigilant and consider these dynamics when making housing market decisions.
BCafeS15
I think 4 rate cuts. I think this will increase house prices as buyers become more confident.
Burnt Out Digger
The rate cuts will be good for the economy but will also allow investors to buy more houses
Danni30723977
Interest rate cuts may boost housing demand, raising prices, but overall impact depends on supply, regulations, and economic conditions.
DebraA
I have taken on a mortgae at 64 and fixed short term as i expect interest rates to keep slipping down. Sales in my area are increasing due to the lower rates.
aunty gran
This will be an unpopular comment. I am a self fully self funded retiree and dreading the next cuts in interest rates due to the negative impact this will have on the merge amount l have in my savings account . When prices go up for groceries goods and services rates etc my income stream pension has a twice yearly rise adjusted to CPI. This increase which is minimal have experience 0 increase and the most is $20 . So while mortgage borrowers are struggling spare a thought for how hard it is for those of us who worked hard all our lives, going without many things to be debt free and have some money in retirement which is now being eaten away by the cost of living. There is pain all around caused by bank interest rate fluctuations but hey how good are their own profit margins!!.
jtmorri
I think there will been two more cuts later this year. Probably 0.25 basis points each from the cash rate. It will drive housing prices up based upon supply not meeting demand. It is going to take a lot longer than a few months for new stock of affordable homes to be constructed and enter the market to cool the housing market down. That sort of building plan will take 3 - 5 years or beyond to have any impact. Unfortunately, rate cuts aren't good for everyone, especially retirees living off of their savings and interest income and in turn it makes them stay in their own large home longer rather than moving (they own their home asset and can't see themselves affording anything else and especially not in the area they know and are currently established which is usually a prime location).
mare
Not sure but it may raise the cost of housing