Will April’s Cash Rate Decision Make Fools of Us? April Rate Report

As we welcome April, we also welcome the second cash rate decision 2025. In February we finally, and publicly, saw the cash rate drop, 0.25 percentage points, bringing the cash rate to 4.10%.

As expected this cash rate drop led to interest rates dropping, and if you haven’t talked to your local MoneyQuest broker already to ensure you’re on a competitive rate, you should. But with the next cash rate decision being made, will April’s cash rate decision put more cash in homeowners’ and homebuyers’ pockets?

The Cash rate Stays Put at 4.10%

February’s cash rate cut sparked excitement, but the RBA has now held the cash rate steady at 4.10%, disappointing those hoping for back-to-back cuts.

Back in January, the Australian Financial Review reported that while rate cuts were expected in 2025, they wouldn’t happen consecutively. RBA Deputy Governor Andrew Hauser reinforced this, advising Australians not to expect consecutive cuts ^[1].

In their monetary policy statement, the RBA said the decision was shaped by current economic uncertainty.

“Sustainably returning inflation to target within a reasonable timeframe is the Board’s highest priority. This is consistent with the RBA’s mandate for price stability and full employment. To date, longer term inflation expectations have been consistent with the inflation target, and it is important that this remain the case.” ^[2].

What Does This Cash Rate Decision Mean for Homeowners?

If you were hoping April’s cash rate decision would be a cut, we haven’t been so lucky this month. However, interest rates are still moving in the right direction.

If you haven’t refinanced since February’s rate cut, now is the time to check if you’re on the right deal. If mortgage repayments are stretching your budget, MoneyQuest can help review your options.

What Does This Cash Rate Decision Mean for Homebuyers?

If February’s cash rate cut wasn’t enough to make homeownership feasible, don’t lose hope.
Another rate cut is expected later in 2025, potentially in May, August, or November.
A future cut could bring the cash rate below 4%—a threshold we haven’t seen since May 2023.
If you’re planning to buy in 2025 or 2026, now is the time to work with a MoneyQuest broker. Even if you’re not ready yet, we can help you develop a savings plan and prepare for future opportunities.

What’s Next?

While we can’t predict for certain what will happen next, at least one more cash rate cut seems to be on the cards for 2025. When that will be we can’t say for sure, but last month’s decision means we can breathe a little easier knowing the cash rate in 2025 will end lower than it started.

We don’t know for sure what will happen when the RBA meets next month in May, but one thing you can know for sure is that MoneyQuest has your back, whether you’re refinancing your existing loan, buying your first home, or looking to upsize, we’re here to help. Reach out to us today!

[1] Read, Michael. Don’t expect rapid fire rate cuts: RBA deputy governor. Australian Financial Review. October 21st 2024. Viewed April 1 2025. 

[2] RBA. Monetary Policy Decision. April 1 2025.

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