All eyes will be on the RBA next week as Australia eagerly awaits the interest rate decision announcement on Tuesday, following the RBA Board’s first meeting of the year. The cash rate, which currently sits at 4.35 per cent has remained unchanged since November 2023 and many economists have brought forward their forecasts predicting a rate cut to February.

That includes economists from the big four banks, NAB, Westpac, CBA and ANZ, who are all predicting a cut of 25 basis points. If the board does cut in February, it will be the first decrease in the cash rate since November 2020, during the COVID-19 pandemic (when rates hit the historical low of 0.1 per cent).

High interest rates have slashed borrowing capacities and affordability and put pressure on mortgage holders as repayments shot up. The current interest-rate environment is providing a welcome boost to buyer confidence, with predicted rate cuts expected to drive renewed demand and price growth nationwide throughout 2025.

While no-one has a crystal ball when it comes to interest rates, the below table outlines what the big four banks’ economics teams are predicting, watch this space!