Reserve Bank delivers first rate cut in five years

The Reserve Bank of Australia has cut interest rates for the first time since 2020, lowering the cash rate by 25 basis points to 4.1 per cent.

The move brings relief to mortgage holders who have faced significant rate increases since 2022, according to Propell Property Managing Director Michael Pell.

“This rate cut is a welcome change after nearly five years without a reduction,” he said. “Since 2022, borrowers have faced significantly higher rates, making today’s decision a much-needed respite for homeowners and investors.”

The decision follows months of speculation and comes amid falling inflation rates.

Pell said some recent property buyers had struggled with higher interest rates, particularly those who expected rates to remain low until 2024.

“Market conditions have withstood interest rate pressures over the past two years, but we’ve seen a slowdown in recent months,” he said.

Southeast Queensland continues to show robust market activity, though with less buyer competition than in previous years.

“Savvy property investors constantly seek the best opportunities, regardless of market conditions, thanks to their long-term perspectives,” he said.

“If banks pass on the cut in full, homeowners and investors should see lower monthly mortgage payments — a long-awaited reprieve given the current cost of living pressures.”