"There could soon be relief for households with a mortgage, with economists predicting an interest rate cut when the Reserve Bank board meets in February.\n\nThe official cash rate has stayed at 4.35 per cent for more than a year.\n\nIf rates do fall, it will be for the first time since 2020.\n\nSo, what can you expect, when, and what could it mean for your home loan repayments?\n\nWhen is the next RBA meeting?\nThe Reserve Bank board will meet on Monday, February 17, and Tuesday, February 18.\n\nThe board's decision to cut, increase or keep the official cash rate unchanged will be announced shortly after the meeting concludes at 2:30pm AEDT on February 18.\n\nWill rates be cut at the February meeting?\nMany economists have brought forward their forecasts for a rate cut to February.\n\nThat includes economists from the big four banks, NAB, Westpac, CBA and Westpac, who are all predicting a cut of 25 basis points.\n\nAny way out of a rate cut?\nPhoto shows Bullock gestures with one hand, a backdrop carrying the RBA logo behind her.Bullock gestures with one hand, a backdrop carrying the RBA logo behind her.\nThe inflation figures give the Reserve Bank a green light to take its foot off the economic brakes.\n\nIt follows recent data showing underlying inflation has moderated more quickly than the RBA expected, falling from 3.6 per cent to 3.2 per cent in the December quarter.\n\nIt's now at its lowest annual rate since the final quarter of 2021, when the economy was recovering from the pandemic.\n\nThat has seen some economists who had expected a rate cut in May shift their forecasts forward to February.\n\nThe inflation data adds to evidence that cost-of-living pressures have peaked for Australian households.\n\nOn the other hand, we are seeing a stronger-than-expected labour market, which also influences the RBA's decision.\n\nRemind me again, what's the current rate?\nIf the board does cut in February, it will be the first decrease in the cash rate since November 2020 during the COVID-19 pandemic (when rates hit the historical low of 0.1 per cent).\n\nRates began increasing in May 2022, going up 13 times over the next 15 months.\n\nIt has sat at its current level of 4.35 per cent for more than a year.\n\nIf economists are correct and there is a 25 basis point cut, the rate will be 4.1 per cent.\n\nHow much could home loan repayments fall?\nIf there is a rate cut in February and the banks pass it on in full, households with a mortgage will see a drop in minimum monthly repayments.\n\nThe following table is based on an owner-occupier paying principal and interest on the average variable rate of 6.33 per cent and 25 years remaining on the loan.\n\nLoan size Repayments decrease\n$600,000 -$92\n$750,000 -$115\n$1,000,000 -$154\nSource: Canstar\n\nFurther interest rate cuts would lead to more savings. For example, Canstar says two rate cuts would see monthly repayments fall by $229 on a $750,000 loan.\n\nAnd if there are four rate cuts this year, a borrower with a $1 million loan could save $599 a month.\n\nIf you want to reduce your repayments in line with a reduction in interest rates, you should call your bank to make sure your payments are decreased to the new minimum.\n\na skyline with houses\nA borrower with a $750,000 loan could save $115 on their monthly repayment if rates are cut in February, Canstar says. (ABC News: John Gunn)\n\nWhen will the banks pass on any cuts?\nWhile banks tend to follow official cash rate moves, they don't have to.\n\nHowever, you could expect any bank withholding rates relief from borrowers to come under intense pressure from customers and Canberra.\n\nAhead of the expected cuts, some fixed home loan rates have begun to fall (to lock customers in).\n\nCanstar.com.au's data insights director Sally Tindall says the cost of wholesale fixed funding has started to ease slightly.\n\n""This, combined with a prospective cash rate cut, should push other banks into moving on fixed rates,"" Ms Tindall says.\n\n""While a few banks are now starting to sharpen their offerings, fixed rates still have a way to fall before they become fashionable again with borrowers.""\n\n\nHow many cuts will there be this year?\nObviously, no-one has a crystal ball when it comes to interest rates.\n\nHowever, this is what the big four banks' economics teams are predicting:\n\nBank How many cuts this cycle\nCBA 4\nANZ 2\nWestpac 4\nNAB 5\nSource: Canstar\n\nHow many times will the RBA board meet this year?\nThe Reserve Bank board will meet eight times this year.\n\nThe outcome will be announced at 2:30pm AEDT after each meeting and governor Michele Bullock will hold a media conference to explain the decision.\n\nHistorically, the board met 11 times a year, but this changed in 2024 in order to spread monetary policy decisions across fewer meetings and allow the board to gather more information.\n\nThese are the dates the RBA will meet in 2025:\n\nFebruary 17-18\nMarch 31-April 1\nMay 19-20\nJuly 7-8\nAugust 11-12\nSeptember 29-30\nNovember 3-4\nDecember 8-9\nHowever, the RBA has indicated some of those dates may change, including November's Melbourne Cup day meeting, so watch this space."