The Reserve Bank of Australia (RBA) is changing how it decides on interest rates, starting with its first meeting of the year. Instead of meeting nearly every month, the RBA will now meet only eight times a year. This means we’ll see the RBA decide on whether to raise, lower, or keep interest rates the same less often than before.

Here’s a quick rundown of when the RBA will meet in 2024:

• Early February
• Mid-March
• Early May
• Mid-June
• Early August
• Late September
• Early November
• Mid-December

No meetings are scheduled for April, July, and October, and these meetings will now stretch over two days instead of just a morning. The RBA will still announce any changes at 2:30 pm on the Tuesday of the meeting, followed by a press conference.

Why the change? The RBA wants more time to think over the economy’s latest numbers before making a call on interest rates. This should help make things more stable for homeowners. Instead of worrying about rate changes every month, there’ll be fewer updates to keep an eye on.

But what does this mean for your mortgage? Some folks think we might see fewer rate changes. Others worry that when changes do come, they could be bigger. The RBA’s new schedule might mean your mortgage rate stays the same for longer periods, giving you a bit of breathing room.

Even with fewer meetings, banks can still change their mortgage rates whenever they like. So, it’s not just about what the RBA does—keep an eye on your bank too.

What’s the buzz on future interest rates? With inflation (the rate prices rise over time) being a bit of a wild card, the RBA has been raising rates to keep things in check. But the latest data shows inflation cooling off, suggesting we might not see as many rate hikes.

Here’s what the big banks think will happen with the RBA’s cash rate:

• Commonwealth Bank (CBA) predicts rates might drop from the current 4.35% to 2.85% by mid-2025.
• National Australia Bank (NAB) has a similar view but thinks the drop to 3.60% will happen by mid-2025.
• Westpac sees a decrease to 3.35% by mid-2025.
• ANZ expects a cut to 3.60% by June 2025, possibly starting to lower rates by November this year.

These predictions hint that if inflation keeps cooling down, we might see lower interest rates in the future, making it easier on everyone’s wallets.

Keep your eyes peeled for what happens at the RBA’s meetings, as these decisions will affect what you pay on your mortgage and how much you can spend or save elsewhere.