Skip to main content

Macro Insights: RBA cuts rate to 4.1%, first cut since November 2020

Bell Direct
February 18, 2025

Welcome to another episode of our Macro Insights series! Today, the RBA made a highly anticipated move, cutting the cash rate by 25bps, bringing it to 4.10% from 4.35%. This marks the first rate cut in over four years after a series of 13 hikes aimed at curbing inflation.

While inflation drivers remain sticky, this rate cut should ease cost-of-living pressures for Aussies, though the full effects will take time to trickle through the economy.

Here’s a quick snapshot of the latest data that influenced today’s decision:

  • Inflation: Annual inflation dropped to 2.4% (Q4 2024), but services inflation remains high at 4.3%.
  • Labour Market: Unemployment rose to 4%, but 256k jobs were added, reflecting a strong labour market.
  • Retail Sales: Consumer spending fell 0.1% in December, signalling easing inflationary pressures.
  • GDP: Q3 2024 GDP expanded 0.3%, below expectations.

The sectors most likely to benefit from this cut? Tech, Healthcare, and Real Estate – all poised for relief in a lower-rate environment.

Market Update

Julia Lee
March 8, 2017

Market Update

Julia Lee
March 6, 2017

Market Update 3 March

Julia Lee
March 3, 2017

Market Update

Julia Lee
March 2, 2017

How to create a watchscreen

Bell Direct
March 1, 2017

How to set trading alerts

Bell Direct
March 1, 2017

How to transfer your shares to Bell Direct

Bell Direct
February 27, 2017

How to get a stock quote

Bell Direct
February 27, 2017

February newsletter Julia’s insights

Julia Lee
February 24, 2017

CEO interview – Cobalt Blue

Bell Direct
February 21, 2017

Your Money Your Call

Julia Lee
February 14, 2017