At its final meeting of the year, the Reserve Bank delivered exactly what was expected, cutting the Official Cash Rate, to a two-year low of 4.25 percent. It also signalled another 50-basis point cut in February and after that, the OCR track shows a gradual easing to 3% in 2025. The move has boosted economic confidence as it shows the central bank is more comfortable about managing inflation as excess capacity eases.
The OCR cut is one of several promising signs. The labour market is adjusting, and while unemployment may rise in the short term, it’s expected to improve as we move into 2025. Recession concerns are fading, costs are coming down and business profitability is lifting.
As confidence increases across the economy, thoughts are turning to growth and expansion. Sectors most sensitive to interest rates, such as construction, retail and manufacturing, are expected to recover first as demand picks up.
On the housing front, expectations are for the market to pick up in 2025, promising an exciting time for property investors. With this in mind, Oxford Edge specialists Anna Riley and Olivia Flyger have put together an insightful presentation on the sector, focusing on key tax considerations.
Whether you’re just starting out or want to stay ahead of the latest tax updates, get in touch with Anna or Olivia to make sure you’re set up for success as the market picks up in the new year.