Julian Finch: RBA unlikely to cut interest rates in February – CPI still too high
Announcement posted by Invigorate PR 21 Jan 2025
Leading lending expert, Julian Finch, founder of Finch Financial, is urging Aussies not to get too hopeful about a rate cut in February.
"While we'd all love to see rates come down, the reality is that economic conditions are still not aligned with the RBA's targets for reducing interest rates. It's essential for homeowners and borrowers to plan for high rates for longer," Finch said.
Finch is a leading money expert, mortgage broker and founder of Finch Financial, Julian Finch. With decades of experience in mortgage brokerage, Finch offers expert insights and advice to thousands of Aussies seeking to get their loan applications approved. His firm, Finch Financial, achieves some of the highest loan approval rates in the country and is known to secure loan approvals within a matter of minutes.
According to Finch there are a number of reasons why the RBA is unlikely to drop interest rates in February.
" The RBA has emphasised that interest rates will remain high until inflation returns to the target range of two to three percent. Currently, inflation is still exceeding three percent, making a rate cut premature," Finch said.
"Despite previous rate hikes, the economy is yet to show sustained signs of cooling. Continued economic growth and demand are keeping inflationary pressures high.
"International monetary policy trends, particularly in the US and Europe, influence Australia's economic strategies. Major global economies are maintaining high interest rates, limiting the RBA's flexibility.
"Wage increases, while supporting household incomes, are contributing to ongoing inflationary pressures. The RBA is unlikely to cut rates while wage growth remains a significant driver of inflation.
"February 2025 is the first meeting of the year and the RBA will need more time to evaluate the impact of previous rate hikes and updated economic data. A rate cut at this meeting is possible but highly improbable."
Finch is encouraging Australians to prepare their finances accordingly
"A lot of households have been holding out for February hoping that rates would come down. It just doesn't look like they will. People need to adjust their household budgets now to account for sustained high mortgage repayments," Finch said.
"Talk to a broker and look into alternative loan options. Tinkering with your loan can actually create quite a bit of breathing space. Explore refinancing or restructuring options to reduce the financial strain at least until rates start to ease," Finch said.
"Build a financial buffer if you can by looking at spending. Focus on savings to create a cushion for potential financial challenges. It sounds simple, but you would be surprised how many people do not bother to cut unnecessary streaming services, fail to shop around on power, insurance and other expenses and fail to give up things they don't really need."
Finch emphasised that by being proactive and informed, Australians can navigate these challenging economic conditions more effectively.
About Finch Financial Services
Based in Hurstville, NSW, Finch Financial Services has been servicing Australian families and businesses with home, personal and commercial loans as well as asset finance services since 2015. Ranked amongst the top five percent of brokerages in Australia according to data from the MFAA, Finch Financial Services is a leading brokerage and family-owned business that specialises in finding its customers loans that are tailored to their needs and goals.