Interest Rate Outlook Post RBA Cut

With the ball now rolling on interest rate cuts, we very quickly turn to what's next.

Whilst a cut is very welcome, the consensus is we need to see a few more before the relief is truly felt. Whilst $80 a month per $500k of mortgage helps, $320 is meaningful. 

Whilst Australia’s big bank economists have been a bit bullish of late, the consensus amongst them is quarterly drops this calendar year, which would land the cash rate at 3.35% at year's end. 

That said, the RBA will treat lightly and deviation in any key economic factors could see them hit the brakes. 

Inflation is of course the leading factor and is in a good spot, however influences can be out of our hands, such as trade war impacts given the geo-political environment. Unemployment will be closely watched though is in check. 

So conditions are looking up. There is relief in sight for mortgage holders, and the increased borrowing power of buyers should see a few more in the game, and put a little kick into the market.