Interest Rate Update – 23 May 2025
The RBA on Tuesday reduced the cash rate by 0.25% for the second time this calendar year. The decision was driven by headline and underlying inflation being in the RBA band for the first time in 4 years.
How far could rates fall, 2 of the majors are suggesting another 0.5% by the end of the year. NAB is suggest 3 0.25% rate reductions.
Variable rate reductions for home loans are still flowing through the system however a solid rate post this latest reduction should be circa 5.65%.
On the commercial property front we are seeing some strong rates for properties geared below 65% and over $5m in debt. Rates around 5.5-5.6% are achievable. If you can get down to a 50% LVR we have seen rates as low as 5.4%.
For the smaller end of commercial (under $5m and geared to 80%) we are seeing rates around 6.4-6.75%.
