RBA UPDATE | Effective June 19, 2024

The Reserve Bank of Australia (RBA) has once again decided to hold the official cash rate at 4.35%.

Commenting on the decision, PropTrack’s Director of Economic Research, Cameron Kusher, said this ongoing pause reflects the easing of inflation, however, will have to wait for the June 2024 quarterly inflation data to see what the RBA will choose to do next. “Although rate cuts are now expected in 2025, most still predict the next move will be down,” Kusher said.

CreditorWatch Chief Economist, Anneke Thompson commented that, "given the stress facing Australian households, both mortgaged and renters, as well as many small and medium sized businesses, we feel it is unlikely the RBA will move the cash rate higher from here."

According to the latest Regional Movers Index (RMI), the number of people leaving the cities has hit a 12-month high and is now 20% higher than the pre-COVID average. The Sunshine Coast continues to be the most popular destination for people fleeing the city. Meanwhile, Sydney is seeing most people leave, with 67% of net capital city outflows. Regional Australia Institute (RAI) Chief Executive Officer, Liz Ritchie, said areas within a 150km radius of a capital city were among the most popular for metro-leaving movers.

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