There could soon be relief for households with a mortgage, with economists predicting an interest rate cut when the Reserve Bank board meets in February. The official cash rate has stayed at 4.35 per cent for more than a year. If rates do fall, it will be for the first time since 2020. Economists from the big four banks, NAB, Westpac, CBA and ANZ, are all predicting a cut of 25 basis points. It follows recent data showing underlying inflation has moderated more quickly than the RBA expected, falling from 3.6 per cent to 3.2 per cent in the December quarter. If there is a rate cut and the banks pass it on in full, households with a home loan will see a drop in minimum monthly repayments.
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