On 7 May 2024, the Reserve Bank of Australia held the official cash rate steady at 4.35 %. The Board noted that inflation was still above its 2–3 % target range but had begun to moderate, while economic growth had slowed and the labour market remained relatively tight. By maintaining the cash rate, the RBA signalled a wait‑and‑see approach to assess how previous rate increases are flowing through to the economy.
Why the RBA held the cash rate in May 2024
The decision to leave the cash rate unchanged means borrowing costs remain at their highest level in more than a decade. Policymakers are balancing the risk that inflation stays too high against the need to support a softening economy. With mortgage rates still elevated, homeowners may benefit from reviewing their loan structure and considering whether refinancing could provide savings. If price pressures continue to ease, we could see a shift toward lower rates later in the year.
Get in touch with a Lend A Loan broker
If you would like to learn more about refinancing your home loan or exploring your options, get in touch with a Lend A Loan broker today. Call us on 0488 220 222 or book a free consultation via our booking page.