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Will Interest Rates Go Down In 2025?


Published on 2024-12-10 01:20:48 - Forbes
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  • After starting 2022 at just 0.1%, the official cash rate is now 3.1% and tipped to rise further. Since the Reserve Bank of Australia (RBA) began lifting the cash rate in May 2022, there have been eight interest rate rises last year,

The article from Forbes Advisor discusses the potential trajectory of interest rates in Australia for 2025. It highlights that while the Reserve Bank of Australia (RBA) has been adjusting rates to manage inflation, several factors could influence future rate decisions. These include global economic conditions, domestic inflation rates, employment levels, and economic growth forecasts. Analysts suggest that if inflation continues to moderate, there might be a possibility of interest rates stabilizing or even decreasing slightly by 2025. However, the RBA's cautious approach means that any rate cuts would likely be gradual. The article also notes that economic forecasts are inherently uncertain, with potential disruptions like geopolitical events or unexpected economic shifts possibly altering the RBA's strategy. Thus, while there is some optimism for lower rates, the economic landscape remains unpredictable.

Read the Full Forbes Article at:
[ https://www.forbes.com/advisor/au/personal-finance/will-interest-rates-go-down-in-2025/ ]