Rate pain set to stay until November

News.com.au - 14/02
Consensus has firmed that the Reserve Bank of Australia will begin cutting interest rates this week, but the full impact of these cuts won’t be felt for up to nine months, new research shows.

Consensus has firmed that the Reserve Bank of Australia will begin cutting interest rates this week, but the full impact of these cuts won’t be felt for up to nine months, new research shows.

The cash rate target has been set at 4.35 per cent since November 2023, with experts largely predicting the RBA will cut rates to 4.10 per cent when the board meets on Monday and Tuesday.

If the RBA does finally announce a cut, modelling released by Equifax shows the full positive impact will only be seen in six to nine months.

If the RBA cuts rates in February it might not have the immediate impact households thought it would. Picture: NewsWire / Jeremy Piper

This means the full impact of the rate cut might not be felt by households and the ...
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