The year 2024 could bring much-needed relief to millions of Australians struggling with inflation as economists and financial markets predict a significant drop in interest rates.

This long-anticipated change could mean more money in your pocket and less stress about mortgage repayments and other loans.

The official cash rate reportedly concluded 2023 at a hefty 4.35 per cent, leaving many Aussies feeling the pinch.

However, the financial markets are optimistic, with a 25 per cent chance of an interest rate cut by March 2024.

Financial markets are optimistic about an interest rate cut in 2024. Image source: Freepik.

The predictions for a cut by June are even more promising, with finance traders forecasting that the Reserve Bank of Australia (RBA) will slash the cash rate twice before the end of the year.

This optimism is largely influenced by the financial climate in the United States.

In mid-December, the US Federal Reserve indicated that its cycle of increasing interest rates has likely reached its peak.

Predictions suggested that interest rates in the US will fall five times in 2024, with similar trends expected in the UK and Europe.

However, economists from the ‘Big Four’ banks Down Under are exercising caution.

They suggested that interest rate cuts may take longer to materialise.

The Commonwealth Bank of Australia (CBA) and Westpac are forecasting that the first interest rate cut may not come until September 2024.

ANZ is slightly more conservative, predicting that the RBA will deliver the first rate cut in November 2024.

Meanwhile, NAB is the most pessimistic—forecasting interest rates won’t start to fall until December this year.

Despite these predictions, Aussies may still have to weather one more rate rise.

The RBA may increase interest rates when it meets for the first time this year on Tuesday, February 6.

Minutes from the last RBA board meeting on December 5, 2023, show the bank is willing to increase rates again if inflation for the past three months comes in above its forecasts.

'Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on how the incoming data alter the economic outlook and the evolving assessment of risks,' the minutes read.

The Consumer Price Index data for the last quarter of 2023, which the RBA uses to assess inflation, is said to be released on January 31.

Key Takeaways

• Financial markets and economists are predicting interest rate cuts in Australia for 2024, offering potential relief for many Australians.
• While the official cash rate ended 2023 at 4.35 per cent, there is a possibility of cuts as early as March, with more expected by June.
• The Big Four banks have varied predictions, with the Commonwealth Bank of Australia and Westpac anticipating the first cut in September, ANZ in November, and NAB being the most pessimistic, not foreseeing cuts until December.
• There is still a chance of an interest rate rise in early 2024, depending on upcoming inflation data and the Reserve Bank of Australia's (RBA) assessments.

What are your thoughts on the predicted interest rate cuts? Let us know in the comments below.

 

[IAN3005]

There goes my plan!!!!

 

[Suzanne rose]

This will help all those with a mortgage so good for my kids but when interest rates go down then so do interest rates on savings which is more likely to affect seniors.

I'm happy to go without the interest I receive if it means my kids will save on their home loans

 

[Ezzy]

A win, win every time for the banks. When the RBA announces an increase, Banks add this onto loans within a day but when these come down, as we know, this could take 3 months to fall & possibly @ the same time the RBA announces another rate cut. Borrowers are always at the mercy of the Lenders.

 

[Morgana]

The year 2024 could bring much-needed relief to millions of Australians struggling with inflation as economists and financial markets predict a significant drop in interest rates.

This long-anticipated change could mean more money in your pocket and less stress about mortgage repayments and other loans.

The official cash rate reportedly concluded 2023 at a hefty 4.35 per cent, leaving many Aussies feeling the pinch.

However, the financial markets are optimistic, with a 25 per cent chance of an interest rate cut by March 2024.

View attachment 38454

Financial markets are optimistic about an interest rate cut in 2024. Image source: Freepik.

The predictions for a cut by June are even more promising, with finance traders forecasting that the Reserve Bank of Australia (RBA) will slash the cash rate twice before the end of the year.

This optimism is largely influenced by the financial climate in the United States.

In mid-December, the US Federal Reserve indicated that its cycle of increasing interest rates has likely reached its peak.

Predictions suggested that interest rates in the US will fall five times in 2024, with similar trends expected in the UK and Europe.

However, economists from the ‘Big Four’ banks Down Under are exercising caution.

They suggested that interest rate cuts may take longer to materialise.

The Commonwealth Bank of Australia (CBA) and Westpac are forecasting that the first interest rate cut may not come until September 2024.

ANZ is slightly more conservative, predicting that the RBA will deliver the first rate cut in November 2024.

Meanwhile, NAB is the most pessimistic—forecasting interest rates won’t start to fall until December this year.

Despite these predictions, Aussies may still have to weather one more rate rise.

The RBA may increase interest rates when it meets for the first time this year on Tuesday, February 6.

Minutes from the last RBA board meeting on December 5, 2023, show the bank is willing to increase rates again if inflation for the past three months comes in above its forecasts.

'Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on how the incoming data alter the economic outlook and the evolving assessment of risks,' the minutes read.

The Consumer Price Index data for the last quarter of 2023, which the RBA uses to assess inflation, is said to be released on January 31.

Key Takeaways

• Financial markets and economists are predicting interest rate cuts in Australia for 2024, offering potential relief for many Australians.
• While the official cash rate ended 2023 at 4.35 per cent, there is a possibility of cuts as early as March, with more expected by June.
• The Big Four banks have varied predictions, with the Commonwealth Bank of Australia and Westpac anticipating the first cut in September, ANZ in November, and NAB being the most pessimistic, not foreseeing cuts until December.
• There is still a chance of an interest rate rise in early 2024, depending on upcoming inflation data and the Reserve Bank of Australia's (RBA) assessments.

What are your thoughts on the predicted interest rate cuts? Let us know in the comments below.

A win, win every time for the banks. When the RBA announces an increase, Banks add this onto loans within a day but when these come down, as we know, this could take 3 months to fall & possibly @ the same time the RBA announces another rate cut. Borrowers are always at the mercy of the Lenders.

 

[Morgana]

Don't even think of interest rate decreases.
Albo and Chalmers have just thrown people a pittance, so Chalmers can say, spending causes high inflation. True, w but it gives the RBA cause to raise interest rates on loans. Would be different if interest rates were raised on bank savings; but that's too much to expect.
Although, what can anyone, especially pensioners, buy for the paltry sum of about $16.00 a week, a loaf of cheap bread and a couple of litres of milk, especially if one lives in the country? While Albo and the politicians, live off the fat of the land on our taxes, Albo guzzles $500 a bottle wine, fills the country with immigrants, who get a free house and money, as soon as they hit our shores and let's not forget "free Australian citizenship", including for criminals, who have no business being here. If they can go back to their own countries for holidays and send money home, they're economic migrants and don't deserve our help.

 

[IAN3005]

I plan to leave the country and then return as a refugee ha ha ha

 

[freedy50]

I hope it doesn't go down before I've got more interest on my savings?

 

[IAN3005]

I hope it doesn't go down before I've got more interest on my savings?

We'll see what I get..... $350 a month.

 

[windyweather]

The year 2024 could bring much-needed relief to millions of Australians struggling with inflation as economists and financial markets predict a significant drop in interest rates.

This long-anticipated change could mean more money in your pocket and less stress about mortgage repayments and other loans.

The official cash rate reportedly concluded 2023 at a hefty 4.35 per cent, leaving many Aussies feeling the pinch.

However, the financial markets are optimistic, with a 25 per cent chance of an interest rate cut by March 2024.

View attachment 38454

Financial markets are optimistic about an interest rate cut in 2024. Image source: Freepik.

The predictions for a cut by June are even more promising, with finance traders forecasting that the Reserve Bank of Australia (RBA) will slash the cash rate twice before the end of the year.

This optimism is largely influenced by the financial climate in the United States.

In mid-December, the US Federal Reserve indicated that its cycle of increasing interest rates has likely reached its peak.

Predictions suggested that interest rates in the US will fall five times in 2024, with similar trends expected in the UK and Europe.

However, economists from the ‘Big Four’ banks Down Under are exercising caution.

They suggested that interest rate cuts may take longer to materialise.

The Commonwealth Bank of Australia (CBA) and Westpac are forecasting that the first interest rate cut may not come until September 2024.

ANZ is slightly more conservative, predicting that the RBA will deliver the first rate cut in November 2024.

Meanwhile, NAB is the most pessimistic—forecasting interest rates won’t start to fall until December this year.

Despite these predictions, Aussies may still have to weather one more rate rise.

The RBA may increase interest rates when it meets for the first time this year on Tuesday, February 6.

Minutes from the last RBA board meeting on December 5, 2023, show the bank is willing to increase rates again if inflation for the past three months comes in above its forecasts.

'Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on how the incoming data alter the economic outlook and the evolving assessment of risks,' the minutes read.

The Consumer Price Index data for the last quarter of 2023, which the RBA uses to assess inflation, is said to be released on January 31.

Key Takeaways

• Financial markets and economists are predicting interest rate cuts in Australia for 2024, offering potential relief for many Australians.
• While the official cash rate ended 2023 at 4.35 per cent, there is a possibility of cuts as early as March, with more expected by June.
• The Big Four banks have varied predictions, with the Commonwealth Bank of Australia and Westpac anticipating the first cut in September, ANZ in November, and NAB being the most pessimistic, not foreseeing cuts until December.
• There is still a chance of an interest rate rise in early 2024, depending on upcoming inflation data and the Reserve Bank of Australia's (RBA) assessments.

What are your thoughts on the predicted interest rate cuts? Let us know in the comments below.

well some of us can`t even afford to take out a loan and being on a pension with no assets or any other income would not get a loan even if we applied for one.

 

[kevinwoodtufftyke52@gmail]

The year 2024 could bring much-needed relief to millions of Australians struggling with inflation as economists and financial markets predict a significant drop in interest rates.

This long-anticipated change could mean more money in your pocket and less stress about mortgage repayments and other loans.

The official cash rate reportedly concluded 2023 at a hefty 4.35 per cent, leaving many Aussies feeling the pinch.

However, the financial markets are optimistic, with a 25 per cent chance of an interest rate cut by March 2024.

View attachment 38454

Financial markets are optimistic about an interest rate cut in 2024. Image source: Freepik.

The predictions for a cut by June are even more promising, with finance traders forecasting that the Reserve Bank of Australia (RBA) will slash the cash rate twice before the end of the year.

This optimism is largely influenced by the financial climate in the United States.

In mid-December, the US Federal Reserve indicated that its cycle of increasing interest rates has likely reached its peak.

Predictions suggested that interest rates in the US will fall five times in 2024, with similar trends expected in the UK and Europe.

However, economists from the ‘Big Four’ banks Down Under are exercising caution.

They suggested that interest rate cuts may take longer to materialise.

The Commonwealth Bank of Australia (CBA) and Westpac are forecasting that the first interest rate cut may not come until September 2024.

ANZ is slightly more conservative, predicting that the RBA will deliver the first rate cut in November 2024.

Meanwhile, NAB is the most pessimistic—forecasting interest rates won’t start to fall until December this year.

Despite these predictions, Aussies may still have to weather one more rate rise.

The RBA may increase interest rates when it meets for the first time this year on Tuesday, February 6.

Minutes from the last RBA board meeting on December 5, 2023, show the bank is willing to increase rates again if inflation for the past three months comes in above its forecasts.

'Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on how the incoming data alter the economic outlook and the evolving assessment of risks,' the minutes read.

The Consumer Price Index data for the last quarter of 2023, which the RBA uses to assess inflation, is said to be released on January 31.

Key Takeaways

• Financial markets and economists are predicting interest rate cuts in Australia for 2024, offering potential relief for many Australians.
• While the official cash rate ended 2023 at 4.35 per cent, there is a possibility of cuts as early as March, with more expected by June.
• The Big Four banks have varied predictions, with the Commonwealth Bank of Australia and Westpac anticipating the first cut in September, ANZ in November, and NAB being the most pessimistic, not foreseeing cuts until December.
• There is still a chance of an interest rate rise in early 2024, depending on upcoming inflation data and the Reserve Bank of Australia's (RBA) assessments.

What are your thoughts on the predicted interest rate cuts? Let us know in the comments below.

It's not so much the Federal Reserve should cut interest rates as the major banks reduce their rates to below the Reserve rate! The Majors use to be inline with the offiicial rate.

 

[Catherines]

Try paying off a home loan @ 17% like we did, finally owning our home in 1982. We bought furniture for our home one thing at a time - on hire purchase, not on credit. We only had our beds and a lounge suite to start with, TV was on monthly rental, no dining table (we had 2 stools and a high chair for the baby and ate at the breakfast bar) until we could pay off our table and chairs, no carpet on the floor for many years till we had the money to pay for it. That was how many people in the 60s, 70s and 80s could afford to build their lives. Not like today - MUST HAVE EVERYTHING THAT OPENS AND SHUTS from day one and it is all on credit. That's why our young ones are up to their eyeballs (and over) in debt. If they saved for an item it would mean so much more to one.

 

[Sockjoan]

The year 2024 could bring much-needed relief to millions of Australians struggling with inflation as economists and financial markets predict a significant drop in interest rates.

This long-anticipated change could mean more money in your pocket and less stress about mortgage repayments and other loans.

The official cash rate reportedly concluded 2023 at a hefty 4.35 per cent, leaving many Aussies feeling the pinch.

However, the financial markets are optimistic, with a 25 per cent chance of an interest rate cut by March 2024.

View attachment 38454

Financial markets are optimistic about an interest rate cut in 2024. Image source: Freepik.

The predictions for a cut by June are even more promising, with finance traders forecasting that the Reserve Bank of Australia (RBA) will slash the cash rate twice before the end of the year.

This optimism is largely influenced by the financial climate in the United States.

In mid-December, the US Federal Reserve indicated that its cycle of increasing interest rates has likely reached its peak.

Predictions suggested that interest rates in the US will fall five times in 2024, with similar trends expected in the UK and Europe.

However, economists from the ‘Big Four’ banks Down Under are exercising caution.

They suggested that interest rate cuts may take longer to materialise.

The Commonwealth Bank of Australia (CBA) and Westpac are forecasting that the first interest rate cut may not come until September 2024.

ANZ is slightly more conservative, predicting that the RBA will deliver the first rate cut in November 2024.

Meanwhile, NAB is the most pessimistic—forecasting interest rates won’t start to fall until December this year.

Despite these predictions, Aussies may still have to weather one more rate rise.

The RBA may increase interest rates when it meets for the first time this year on Tuesday, February 6.

Minutes from the last RBA board meeting on December 5, 2023, show the bank is willing to increase rates again if inflation for the past three months comes in above its forecasts.

'Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on how the incoming data alter the economic outlook and the evolving assessment of risks,' the minutes read.

The Consumer Price Index data for the last quarter of 2023, which the RBA uses to assess inflation, is said to be released on January 31.

Key Takeaways

• Financial markets and economists are predicting interest rate cuts in Australia for 2024, offering potential relief for many Australians.
• While the official cash rate ended 2023 at 4.35 per cent, there is a possibility of cuts as early as March, with more expected by June.
• The Big Four banks have varied predictions, with the Commonwealth Bank of Australia and Westpac anticipating the first cut in September, ANZ in November, and NAB being the most pessimistic, not foreseeing cuts until December.
• There is still a chance of an interest rate rise in early 2024, depending on upcoming inflation data and the Reserve Bank of Australia's (RBA) assessments.

What are your thoughts on the predicted interest rate cuts? Let us know in the comments below.

 

[Da Freddo]

Try paying off a home loan @ 17% like we did, finally owning our home in 1982. We bought furniture for our home one thing at a time - on hire purchase, not on credit. We only had our beds and a lounge suite to start with, TV was on monthly rental, no dining table (we had 2 stools and a high chair for the baby and ate at the breakfast bar) until we could pay off our table and chairs, no carpet on the floor for many years till we had the money to pay for it. That was how many people in the 60s, 70s and 80s could afford to build their lives. Not like today - MUST HAVE EVERYTHING THAT OPENS AND SHUTS from day one and it is all on credit. That's why our young ones are up to their eyeballs (and over) in debt. If they saved for an item it would mean so much more to one.

You must have had a window into my house Catherines,
Your post is spot on.
I wage coming in while the Wife stayed home to look after the kids.
Sure wasn't easy.

 

[Sockjoan]

I have no loans; my house is fully paid off. Interest rate cuts reduce my income. Not happy!

 

[Graham12]

I wouldn't trust Albo and grim Jim to reduce our inflation. Overseas inflation may be going down but they don't have Albo.

 

[Margwhit57]

The year 2024 could bring much-needed relief to millions of Australians struggling with inflation as economists and financial markets predict a significant drop in interest rates.

This long-anticipated change could mean more money in your pocket and less stress about mortgage repayments and other loans.

The official cash rate reportedly concluded 2023 at a hefty 4.35 per cent, leaving many Aussies feeling the pinch.

However, the financial markets are optimistic, with a 25 per cent chance of an interest rate cut by March 2024.

View attachment 38454

Financial markets are optimistic about an interest rate cut in 2024. Image source: Freepik.

The predictions for a cut by June are even more promising, with finance traders forecasting that the Reserve Bank of Australia (RBA) will slash the cash rate twice before the end of the year.

This optimism is largely influenced by the financial climate in the United States.

In mid-December, the US Federal Reserve indicated that its cycle of increasing interest rates has likely reached its peak.

Predictions suggested that interest rates in the US will fall five times in 2024, with similar trends expected in the UK and Europe.

However, economists from the ‘Big Four’ banks Down Under are exercising caution.

They suggested that interest rate cuts may take longer to materialise.

The Commonwealth Bank of Australia (CBA) and Westpac are forecasting that the first interest rate cut may not come until September 2024.

ANZ is slightly more conservative, predicting that the RBA will deliver the first rate cut in November 2024.

Meanwhile, NAB is the most pessimistic—forecasting interest rates won’t start to fall until December this year.

Despite these predictions, Aussies may still have to weather one more rate rise.

The RBA may increase interest rates when it meets for the first time this year on Tuesday, February 6.

Minutes from the last RBA board meeting on December 5, 2023, show the bank is willing to increase rates again if inflation for the past three months comes in above its forecasts.

'Members agreed that whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable time frame will depend on how the incoming data alter the economic outlook and the evolving assessment of risks,' the minutes read.

The Consumer Price Index data for the last quarter of 2023, which the RBA uses to assess inflation, is said to be released on January 31.

Key Takeaways

• Financial markets and economists are predicting interest rate cuts in Australia for 2024, offering potential relief for many Australians.
• While the official cash rate ended 2023 at 4.35 per cent, there is a possibility of cuts as early as March, with more expected by June.
• The Big Four banks have varied predictions, with the Commonwealth Bank of Australia and Westpac anticipating the first cut in September, ANZ in November, and NAB being the most pessimistic, not foreseeing cuts until December.
• There is still a chance of an interest rate rise in early 2024, depending on upcoming inflation data and the Reserve Bank of Australia's (RBA) assessments.

What are your thoughts on the predicted interest rate cuts? Let us know in the comments below.

 

[Margwhit57]

I would certainly like a rate decrease, as at 66 having a mortgage is killing me especially on a carers pension and a widow of 2 years. Our home loan was nearly finished when my husband had to go bankrupt in 2009. Lucky I was working full time but it put us behind by a lot. Now looking at downsizing to try and get rid of the mortgage. I don’t believe anything the government say especially Albo.

 

[Penny4]

I reckon politicians are all the same. At least we don't have "it's not my job" Morrison anymore.
I hope the interest rates do reduce for the younger generation with their home loans.

 

[Da Freddo]

Who is Albo??
I thought his name was ANTHONY ABBOEASY!
The same bloke head who wanted the VERY VOCAL VOICE,
but I could be wrong.