Just before the last hike, the market had expected the Reserve Bank to raise rates but sometime earlier this year. But as rates have increased, the number of people taking fixed rate loans has decreased. Of course, before breaking out the champagne, it's worth thinking about why the market expects the RBA to cut the cash rate. Central banks don't cut interest rates because they think people deserve to pay lower interest rates, they do it because they think it will have an impact on the economy. If prices once again rise faster than incomes, we may see now as a good time for housing affordability.

Source: The Guardian January 17, 2024 23:50 UTC