A number of components are shaping the outlook for 2025. The Reserve Financial institution of Australia’s determination to maintain the money charge at 4.35% all through 2024 compressed internet curiosity margins, however potential charge cuts this 12 months may add contemporary challenges for banks, albeit with much less affect than in the course of the pandemic because of stronger mortgage books. Declining property costs in main cities like Sydney and Melbourne have additionally weighed on mortgage portfolios, elevating questions on asset high quality.
