In a significant move today, the Reserve Bank of Australia (RBA) reduced its benchmark cash rate by 25 basis points, bringing it down from its 13-year high of 4.35% to 4.10%.

The immediate beneficiaries of the rate cut are borrowers, particularly homeowners with variable-rate mortgages. In response to the RBA's announcement, Australia's "Big Four" banks—Commonwealth Bank of Australia, National Australia Bank, Westpac, and ANZ Group—have each committed to passing on the entire 25 basis point reduction to their customers. These adjustments are slated to take effect between late February and early March 2025.

When will interest rates go down in Australia?

This is the million-dollar question we’d all love to have answered, especially considering the current economic climate. Many nationwide households genuinely feel the financial pinch from the higher interest rates, which have proven to be significantly more burdensome than those experienced during the COVID pandemic.