Australia’s Inflation Falls
- Future Accounting
- Jul 3
- 1 min read
Are More Interest Rate Cuts Around the Corner?
Good news on the economic front – Australia’s inflation rate just dipped to its lowest level in seven months! That’s a big win for households, and it’s fuelling fresh optimism that another interest rate cut could be just around the corner.
According to the latest data from the ABS, the Consumer Price Index (CPI) rose just 2.1% in the 12 months to May 2025 – down from 2.4% in April. For the RBA, that’s a reassuring signal that things are heading in the right direction.
With inflation cooling, all eyes are now on the Reserve Bank. Will they deliver another interest rate cut in July? - Economists are tipping yes, predicting a move to 3.6% at the RBA’s next meeting this week.
Even Treasurer Jim Chalmers weighed in, welcoming the lower inflation but reminding us we’re not out of the woods just yet. Still, the vibe is definitely more positive than it’s been in months.
For mortgage holders, a rate cut could bring some welcome relief in the form of lower repayments and more breathing room in the household budget. But there’s a flip side – lower rates could stir up the property market again, making affordability tougher for first-home buyers.
And for investors? More rate cuts could shift the gears on market behaviour – think equities, fixed income, and housing – so it’s a good time to check in with your financial strategy.
Let’s chat – we’re here to help you make sense of what’s next.
