When does the RBA meet next and interest rates go down?

Many will be taking comfort in the fact that the nation’s big four banks are predicting several rate cuts for the rest of the year.

The cuts come as the Reserve Bank of Australia (RBA) shifts its focus from reducing inflationary pressures to measures designed for economic growth.

When does the RBA meet next?

The RBA has listed the following meeting dates on its website:

7-8 July

11-12 August

29-30 September 

3-4 November 

8-9 December 

'How interest rate cuts affect the property market': youtube.com/mortgagechoice

However, the RBA told reporters late last year that some of those meeting dates may shift.

That may include the November meeting, so it doesn’t clash with Melbourne Cup Day on 4 November.

When will an outcome be announced?

The outcome of the respective meetings will be announced at 2.30pm on the second day scheduled, and the governor will hold a media conference at 3.30pm.

The minutes of the monetary policy meeting will continue to be published two weeks after each meeting.

What is the cash rate target?

The RBA has set the cash rate target at 3.85% as of 21 May.

'The RBA and the cash rate': youtube.com/mortgagechoice

This rate was lowered from 4.10% by 25 basis points at the 20 May meeting. The next update for the cash rate target is scheduled for 2.30pm on 8 July.

When will the next rate cut be?

Mortgage holders could be waiting until September to see a reduction in their home loan repayment rates as some economists predict the RBA will not make a further cuts at its July and August meetings.

RBA governor Michele Bullock said the board had considered a 0.50% cut during its May meeting, before reaching consensus on the 0.25% reduction to the cash rate target.

“Does it mean we’re headed into a long series of interest rate cuts? I don’t know at this point,” she told media.

She described the 0.25% cut as “cautious”, adding that it came “with a recognition that if we need to move quickly, we can. We have got space.”