NAB is the only big four bank to cut fixed rates so far this year but it’s widely expected that other banks will follow suit.

Following NAB, could more banks cut interest rates?

“I do expect more lenders will follow suit and start paring back their fixed rates.”

Credit: (AAP Image/Joel Carrett)

Could the RBA cut the cash rate and by how much?

Director of the Griffith Business Lab at Griffith University, Graeme Hughes, told SBS news the RBA considers a range of factors when setting the cash rate.

Typically when making adjustments to the cash rate target, the RBA will increase or decrease it by 0.25 percentage points.

How much could Australians save?

Data by Canstar shows that many households could save around $100 or more per month on their home loans after a single rate cut.

The amount is based on an owner-occupier paying principal and interest with 25 years remaining on their mortgage in February 2025 on the average variable rate for existing borrowers of 6.33 per cent as recorded by the RBA.

CBA’s economic team expects four 0.25 percentage point cash rate cuts in 2025, with the first one expected in February and then one cut per quarter in the following three quarters.

“That will depend on the global impact of the Trump tariffs. Whether they will be inflationary or just transitory,” he said.