
RBA to cut interest rates in July: What this means for Australian homeowners
Australia's financial outlook anticipates a Reserve Bank of Australia (RBA) cash rate cut of 25 basis points on July 8, 2025, lowering the rate to 3.60%. Westpac, Commonwealth Bank, and NAB predict this cut due to lower inflation, with annualised inflation at 2.1%. For a $600,000 mortgage, homeowners could save $90 monthly, reducing mortgage stress for approximately 99,000 households.
iStock RBA to cut interest rates in July Australia's financial landscape is set for a shake-up as the Reserve Bank of Australia (RBA) is widely expected to cut the official cash rate by 25 basis points at its meeting on July 8, 2025. This move would bring the cash rate down to 3.60%, offering immediate relief to mortgage holders.
In a rare show of consensus, Westpac, Commonwealth Bank, and NAB have all publicly forecast a rate cut following the July RBA meeting. These predictions come on the back of softer-than-expected inflation data, with the latest Australian Bureau of Statistics figures showing annualised inflation at just 2.1%—comfortably within the RBA's 2–3% target band.
Westpac: Chief Economist Luci Ellis highlighted that the May CPI indicator 'came in below even the low number that we expected,' prompting the bank to bring forward its rate cut forecast to July. Westpac now expects the cash rate to eventually fall to 2.85%, implying three further 25 basis point cuts after July.
Commonwealth Bank: Economists expect two 25 basis point cuts this year—one in July and another in August—citing easing inflation and the RBA's dovish tone. They predict the cash rate will reach 3.35% by the end of the cutting cycle.
NAB: NAB's economists also anticipate a July cut, followed by two more in August and November, bringing the rate to 3.10%. ANZ, however, is holding on to its forecast for a cut in August, not July, making it the outlier among the big four. ANZ has described the rate cut path as the 'path of least regret,' but is cautious about acting too soon, preferring to wait for further data before recommending a move.
If the RBA moves to slash rates tomorrow, the cash rate will drop from 3.85% to 3.60%. For a typical Australian mortgage of $600,000, this could mean a reduction in repayments of about $90 per month—assuming banks pass on the full cut to borrowers. This would bring their total monthly savings to $273 since rate cuts began earlier this year.For larger mortgages, such as $1 million, the monthly savings could reach $150. These cumulative savings are providing crucial breathing room for households, especially after a prolonged period of high rates. The impact of these cuts is more than just numbers: the share of mortgage holders considered 'At Risk' of mortgage stress is projected to fall from 26% to 24.7% after the July cut, equating to about 99,000 fewer households under financial pressure. Lower repayments will allow families to redirect funds to other essentials or build a financial buffer.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Time of India
3 hours ago
- Time of India
Tata Steel ties up with InQuik to bring Modular Bridge Technology to India for faster bridge construction
Tata Steel has signed a Memorandum of Understanding with Australia's InQuik Group . This partnership aims to roll out modular bridge systems across India using InQuik's award-winning technology. The idea is to combine Tata Steel's manufacturing might with InQuik's ready-to-install bridge design. The system is simple but effective. InQuik's design uses prefabricated steel moulds that are filled with concrete at the site. This makes it possible to put up bridges quicker than traditional methods. Costs go down too. And the bridges are built to handle tough climates. India still has far-flung villages and towns that struggle with poor roads and few bridges. Quick-to-build modular bridges can change that. More bridges mean shorter travel times, better trade routes and fewer communities left out. As per Tata Steel's press statement, this deal supports India's push for stronger transport links. It could also help tackle the challenges of building in remote areas where heavy equipment is hard to get. What Tata Steel wants For Tata Steel, this is part of a bigger shift. The company is looking to move beyond just selling steel and into full-scale solutions for builders. According to the press statement, T V Narendran , Chief Executive Officer & Managing Director, Tata Steel, said, Tata Steel focuses on delivering smart and sustainable construction solutions to fulfil the growing infrastructural needs of a modern India. This collaboration with InQuik reflects our technology-driven approach to reimagine construction practices in the country. Live Events This deal fits that goal. More value-added products. More ways to use steel smartly. And a chance to help shape how India builds its roads and bridges. InQuik's Indian entry This is also a big moment for InQuik. The Australian firm wants to grow abroad and sees India as the right place to expand. Logan Mullaney , CEO, InQuik Group, said, We are excited to partner with Tata Steel, a global leader in steel manufacturing, to expand the reach of our bridge systems into the Indian market. This agreement represents a significant milestone in InQuik's international growth and reflects the confidence that leading companies like Tata Steel have in our technology. Together, we can deliver rapid, cost-effective, and resilient infrastructure to support India's growing connectivity needs. India needs this kind of solution. The government has been focusing on roads and rural connectivity. But many places still wait years for a bridge that connects them to markets, schools or hospitals. This technology could help close that gap. Tata Steel has already been investing in downstream products for faster building. This move shows the firm wants to stand out not just for making steel but for what that steel can build. The MoU sets the ball rolling. Now, both companies will look at projects where this system can work best. Bridges built faster. Travel made safer. Communities brought closer. That's the plan. And for Tata Steel and InQuik, it could be just the start.


NDTV
6 hours ago
- NDTV
Who Is Sanjog Gupta? All You Need To Know About The New ICC CEO
The International Cricket Council (ICC) announced the appointment of media baron, Sanjog Gupta, as the board's new Chief Executive Officer (CEO) on Monday. Gupta joins the Jay Shah-led ICC, replacing Australian Geoff Allardice, who stepped down before the Champions Trophy earlier this year over 'personal reasons'. Gupta is already a well-known figure in the cricketing industry. He was serving as the CEO (Sports & Live Experiences) at JioStar but will now be taking charge of his new role at ICC with immediate effect. Who Is Sanjog Gupta? Gupta started his career in the sports industry as a journalist, working for The Tribune in Delhi. This is where he developed a deep understanding of media and storytelling. On the educational front, Gupta holds a Bachelor of Arts (Honours) degree in Economics from Delhi University, which he completed in 2002. Gupta joined Star India in 2010 as the company's Assistant Vice-President. He held multiple leadership roles in content, programming, and strategy. He became CEO of Sports at Disney & Star India in 2020, while holding different portfolios in sports. After the merger of Viacom18 and Disney Star, Gupta was named the CEO of Sports & Live Experiences at JioStar in November 2024. With his contributions to sports broadcasting, Gupta has been hailed as the architect of India's modern sports ecosystem. He also played an important role in the growth of the Indian Premier League (IPL) and ICC events. Gupta was the man behind the rise of Indian domestic sports leagues such as the Pro Kabaddi League (PKL) and Indian Super League (ISL). Sanjog Gupta's Appointment As ICC Chairman He will be the seventh CEO of the ICC, which said it received more than 2,500 applications from 25 countries, from which 12 candidates were shortlisted. "Candidates ranged from leaders associated with sport's governing bodies to senior corporate executives from across sectors," the ICC said. The names were forwarded to the Nominations Committee comprising ICC deputy chairman Imran Khwaja, ECB chairman Richard Thompson, SLC president Shammi Silva, and BCCI secretary Devajit Saikia. They recommended Gupta for the role, which was approved by ICC chairman Jay Shah. "Sanjog Gupta has been a driving force behind the transformation of sports broadcasting in India and globally," the ICC said. "Sanjog has played a pivotal role in shaping the continued growth of marquee Cricket properties such as ICC events & IPL, establishing domestic sports leagues like PKL and ISL, furthering the popularity of global sporting events such as Premier League and Wimbledon and scaling the business across consumer and commercial objectives," it said. Shah said Gupta's experience in sports strategy and commercialisation will be vital for the ICC. "Sanjog brings extensive experience in sports strategy and commercialisation, which will be invaluable for the ICC," he said. "His deep understanding of the global sports as well as M&E landscape combined with his continued curiosity about the cricket fan's perspective and passion for technology will prove essential in our ambition to grow the game in the coming years." Gupta succeeds Allardice who had quit in January this year after a four-year tenure.


Economic Times
6 hours ago
- Economic Times
RBA to cut interest rates in July: What this means for Australian homeowners
Synopsis Australia's financial outlook anticipates a Reserve Bank of Australia (RBA) cash rate cut of 25 basis points on July 8, 2025, lowering the rate to 3.60%. Westpac, Commonwealth Bank, and NAB predict this cut due to lower inflation, with annualised inflation at 2.1%. For a $600,000 mortgage, homeowners could save $90 monthly, reducing mortgage stress for approximately 99,000 households. iStock RBA to cut interest rates in July Australia's financial landscape is set for a shake-up as the Reserve Bank of Australia (RBA) is widely expected to cut the official cash rate by 25 basis points at its meeting on July 8, 2025. This move would bring the cash rate down to 3.60%, offering immediate relief to mortgage holders. In a rare show of consensus, Westpac, Commonwealth Bank, and NAB have all publicly forecast a rate cut following the July RBA meeting. These predictions come on the back of softer-than-expected inflation data, with the latest Australian Bureau of Statistics figures showing annualised inflation at just 2.1%—comfortably within the RBA's 2–3% target band. Westpac: Chief Economist Luci Ellis highlighted that the May CPI indicator 'came in below even the low number that we expected,' prompting the bank to bring forward its rate cut forecast to July. Westpac now expects the cash rate to eventually fall to 2.85%, implying three further 25 basis point cuts after July. Commonwealth Bank: Economists expect two 25 basis point cuts this year—one in July and another in August—citing easing inflation and the RBA's dovish tone. They predict the cash rate will reach 3.35% by the end of the cutting cycle. NAB: NAB's economists also anticipate a July cut, followed by two more in August and November, bringing the rate to 3.10%. ANZ, however, is holding on to its forecast for a cut in August, not July, making it the outlier among the big four. ANZ has described the rate cut path as the 'path of least regret,' but is cautious about acting too soon, preferring to wait for further data before recommending a move. If the RBA moves to slash rates tomorrow, the cash rate will drop from 3.85% to 3.60%. For a typical Australian mortgage of $600,000, this could mean a reduction in repayments of about $90 per month—assuming banks pass on the full cut to borrowers. This would bring their total monthly savings to $273 since rate cuts began earlier this larger mortgages, such as $1 million, the monthly savings could reach $150. These cumulative savings are providing crucial breathing room for households, especially after a prolonged period of high rates. The impact of these cuts is more than just numbers: the share of mortgage holders considered 'At Risk' of mortgage stress is projected to fall from 26% to 24.7% after the July cut, equating to about 99,000 fewer households under financial pressure. Lower repayments will allow families to redirect funds to other essentials or build a financial buffer.