Join us for the rolling coverage of the official announcement of the RBA, together with expert comments from economists and everything you need to know from the Michele Bullock press conference immediately after the announcement.
Inflation risks of the key in the decision
15.03pm
The RBA board has issued its statement to guide the decision of the rate for Hold, and confirmed that all board members were unanimous in the choice.
It is after the newest inflation data from the Headline has confirmed the highest annual inflation percentage for Australia in 13 months. The statement said that the findings suggest that the most importantly three-month data for July-September-in-terms to be released within a few weeks can be able to paint a similar image. It also said that inflation can be “higher than expected” and higher than what was suggested when the rates were lowered five weeks ago.
“Stronger than expected data on growth and inflation can indicate that households have become more comfortable as the real income and wealth rise,” the statement said.
No relief for borrowers
2.42 pm
Today’s decision by the RBA to keep the cash rate stable at 3.60% will undoubtedly be disappointing for households with a mortgage. Another 0.25% that has been reduced from the bank could have seen people with a $ 500,000 housing loan saving, saving around $ 80 a month.
For people who want to step on the real estate ladder this spring, the house prices are expected to be more stable than when the rates were lowered.
Lenders are likely to consider marketing more loan options with competing interest rates in an attempt to secure more customers. This is most likely given the predictions for a rate reduction at the beginning of November.
The cash rates stable stable at 3.60%
2.30 pm
The RBA has confirmed that there will be no change in the cash rate of Australia and it will remain at 3.60%.
The decision this afternoon is in accordance with the expectations of the market and the economist and sees the continuation of the banking cycle process of the bank. A successive cut, hold, cut, a detention pattern of decision-making has now been followed for seven months-a gradual relaxation against the costs of living crisis, while the country has struggled to stabilize inflation.
There are still two options for borrowers, homeowners and real estate to take advantage of lower interest rates this year, where the board would come again in both November and December.
RBA Gouverneur Michele Bullock will announce whether the interest rates will fall again. Photo: Monique Harmer
Economist Call: Interest reduction unlikely
2.13 pm
With inflation back in the course of the REA Group Executive Manager of Economics Angus Moore says that it is very unlikely that the RBA will draw a surprise movement this afternoon.
“It is unlikely that we will see a lot of them this month,” he said. “The monthly CPI indicator was a bit higher for August, which makes a reduction even less likely.
“The RBA will want to wait for the next quarter of CPI release at the end of next month, which will come a bit before the November meeting. That gives them more information about how inflation follows, especially because they do not place much weight on the monthly CPI indicator.”
Interest reasons for the Big Four Banks
2.03 pm
National Australia Bank has previously anticipated further interest rates, and has now withdrawn and expects no more changes to the cash rates until 2026.
The largest lender in Australia, Commonwealth Bank, predicted the next rate reduction for November, although the economists warned this week that the latest CPI indicator could change the prospects. Westpac says that an interest rate reduction of November is now less certain, although it remains their basicase. Neither of the bank has predicted a reduction for today.
Economists at ANZ also predict a rate reduction in November, but say that there is now a “real risk” that will not happen.
Read more: It’s over: Big Bank Bombshell no longer warns interest rates
Reia calls for interest reduction
13.46 hours
The Real Estate Institute of Australia urges the reserve bank to plow today with tariff lighting, despite the recent increase in the headline inflation that was confirmed by the ABS last week.
While the data of Augustus marked the highest annual inflation in 13 months, Vice-President Hannah Gill noted that annual trimmed average inflation is still within the target range of the RBA 2-3% and low enough for the bank.
The industrial authority said that the balance on the real estate market is crucial, and adds that actions that help tackle the core problems of the real estate market of affordability and lack of housing stock are still important.
Read more: Aussie Property Big Namur Rally to tackle homelessness
House prices continue to rise
13.29 hours
Australians continue to struggle with rising real estate prices, with the latest proptrack house price index that confirmed Augustus, was the eighth consecutive month of price growth.
The home values rose by 0.5% last month to achieve a new record high for the nation. Real estate prices have risen by 5.3% in the past year, with the median value of a house in Australia that is now for $ 835,000.
Sydney remains the most expensive city in the country to buy a house, followed by Perth and Brisbane. Darwin, Brisbane and Perth are the capitals that have seen the greatest price growth in the last 12 months.
Anticipate markets on a hold
1.14 pm
The market expectations of a rate reduction have gradually fallen in the second half of the month and took a clear dip after the release of the National Accounts data from June Quarter of the Australian Bureau of Statistics (ABS).
Although the economy grew a little more than economists expected, the data 2024-25 confirmed the weakest financial year for growth in Australia since the early nineties, excluding Covid.
The chance of a reduction has fallen daily since 17 September, with the Australian Stock Exchange RBA rate indicator demonstrating that 96% of the market today does not expect a reduction in the bank.
Read more: Unveiled: Surprising number of Aussies expects RBA -Renteverlaging today
Treasurer trust in inflation
13.02 hours
Treasurer Jim Chalmers says that he still has faith in the inflationary prospects for the country, despite the increase in August.
“Monthly inflation figures can be volatile and are less reliable than the quarterly figures,” he said. “The progress on inflation has given RBA confidence to lower the rates three times.
“Despite the increased volatility in the world economy, the underlying inflation lies within the goal of the RBA and that is a promising result in uncertain times. These results come at a time when inflation is supplemented in parts of the world, including the United States, Canada and New Zealand and it remains high in places as the United Kingdom.”
RBA warns that the economy is ‘in danger’
12.47pm
This afternoon’s decision comes a week after the publication of RBA governor Michele Bullock in Canberra for the permanent committee of the economy of the House of Representatives.
Mrs. Bullock was largely positive when the progress of Australia is curbing high inflation and the switch from the country to a persistent period of lower inflation. Nevertheless, she suggested that the view of the administration for the economy of Australia weakens “the further in the future we look”.
The comments follow the continuous international market volatility behind the back of geopolitical tensions in Europe and the Middle East, as well as the consequences of the introduction of global rates by the United States.
Read more: RBA says that the Australian economy is in danger despite its strength
Cut, hold, cut, hold, cut …?
12.29pm
September is seven months since the RBA started its first cutting cycle in more than four years.
Since that welcome relief for homeowners and borrowers from Aussie, the Bank has stable JOJO between holding the cash rate and reducing it. Lowering of 0.25% in February, May and August were alternated with tariff -toin sins in April and July.
Although it may feel like things are going slower than expected at the beginning of the year, the approach closes the plans of the RBA to gradually relax while softening inflation.
Based on this pattern we are in line … but the RBA does not make decisions based on patterns.
Inflation -increase in care
12:13 pm
The latest consumer price index (CPI) monthly indicator turned out last week Inflation from the head rose to 3.0%in August. That is at the top of the desired target range of 2-3% of the RBA where it has fought since Covid to maintain inflation.
Although the bank expects a small rise in the headline’s head, coincides with roles of electricity discount, the latest data marks the highest annual inflation percentage that is seen in 13 months.
The bank’s preferred figure is trimmed average inflation, which spends the effects of one -off and volatile price movements. It rose somewhat to 2.7%in August, but is still in goal.
Read more: RBA Rate Hike on cards after inflation shock
Welcome to our Live Blog
12.01pm
Thank you for coming to us today for this live coverage of the next decision from the reserve Bank of Australia (RBA), which is expected at 2.30 p.m.
We bring you the latest predictions and updates in the afternoon, while we wait to hear if the cash rate stays at 3.60% or is being reduced for the fourth time this year.
If a reduction of 0.25% is confirmed, this will result in the lowest percentage that Australia has seen since the beginning of 2023. It will also mark the highest number of tariff reductions that Aussies will have seen in one calendar year since 2012.
#RBA #Rentetal #rates #Live #Updates #Breken #exemption #RBA #Rates #possesses #Realestate.com.au