Following February's historic rate cut - the first in over four years - the Reserve Bank of Australia has opted to keep the cash rate on hold at 4.10% at its April 2025 board meeting. A pause after the first move in any easing cycle is entirely normal, and in many ways expected. The board wants time to assess how the February cut is filtering through the economy before committing to the next step. Here's what borrowers on the Gold Coast and across Australia need to know. (Source: RBA Media Release)

The Decision

The RBA board met on 1 April 2025 and voted to keep the cash rate at 4.10%. The decision was broadly anticipated by markets and economists, who had widely flagged that the board would need at least one meeting to absorb the economic impact of February's cut before moving again. Governor Michele Bullock's post-meeting statement was measured, reiterating that future decisions would remain data-dependent. The board acknowledged progress on inflation while noting that the labour market had remained stronger than expected, warranting caution about moving too quickly.

Why the Pause

A hold after an initial cut is standard central banking practice, and the April pause reflects a careful, considered approach rather than a change in direction:

  • Assessing the February cut: Monetary policy changes take months to fully work their way through the economy. The board wanted to see preliminary signs of how households and businesses were responding to the February reduction before adding further stimulus.
  • Labour market staying tight: Australia's unemployment rate remained below 4.5% heading into April, with job creation continuing at a solid pace. A tight labour market can support consumer spending and keep inflation from falling as quickly as desired.
  • Inflation progress intact but not complete: Trimmed mean inflation had returned to the target band, but the board expressed some caution about services inflation, which tends to be stickier and slower to respond to rate changes.
  • Property market reacting: Early data suggested that the February cut had already prompted an uptick in buyer activity, particularly in south-east Queensland. The board was watching property price dynamics to ensure the easing cycle didn't reignite asset price inflation.

What This Means for Borrowers

A hold means no change to repayments for variable rate borrowers. If your lender passed on February's cut, you're already benefiting from that reduction and today's decision simply means that savings level stays where it is for now.

The more important message from today's meeting is that the easing cycle is still very much alive. Most economists continue to forecast at least one more cut before mid-year, with the May board meeting flagged as the most likely opportunity for the next move. For a borrower with a $600,000 mortgage, each additional 25 basis point cut would add another approximately $78 per month in savings on top of February's reduction.

  • Variable rate borrowers should be sitting at a rate that is 25 basis points lower than they were in January. If you haven't confirmed this with your lender, now is a good time to check.
  • Fixed rate borrowers coming off fixed terms in the next few months are in a reasonable position - the variable rate environment is improving, and there may be more cuts to come.
  • Prospective buyers can take confidence from the fact that rates are moving in the right direction, even if today wasn't another cut. Borrowing capacity will continue to improve as the cycle progresses.

What You Should Do Now

A pause meeting is a good reminder not to become complacent about your loan. The gap between the best and worst variable rates in the market can be substantial, and many borrowers are still sitting on rates that haven't been meaningfully reviewed in years.

  • Confirm your rate post-February cut: Check with your lender that you received the full 25 basis point reduction and understand what your current rate is.
  • Compare against the market: With lenders competing aggressively, the gap between your current rate and the best available could be significant. A broker can do this comparison for you across dozens of lenders.
  • Prepare for the next cut: The May meeting is a live opportunity for another reduction. Having a plan for how you'll respond - whether that's refinancing, restructuring, or simply maintaining repayments to pay down principal faster - puts you in a stronger position.
  • Think about your offset account: If you have cash sitting in a transaction or savings account, moving it into an offset can immediately reduce the interest you're paying while keeping the funds accessible.

The rate cut cycle is well underway, and Loan Hive is here to help you make the most of it. If you'd like a free loan review or just want to understand your options in the current environment, get in touch with our team today.