Reserve Bank of Australia April 2025 Cash Rate Decision
The Reserve Bank of Australia’s (RBA) Monetary Policy Board met on March 31 – April 1, 2025. The Board decided to maintain the cash rate target at 4.10%, a decision closely watched by the property, housing, and construction sectors across Australia.
Inflation Trends and Forecasts
The Consumer Price Index (CPI) and broader inflation measures remain above the RBA’s 2-3% target range. While inflation has eased from its 2022 peak, underlying inflation persists. The RBA notes that continued inflationary pressure could influence future interest rate decisions, which in turn impact mortgage rates and construction financing costs.
US Tariffs and Global Trade Uncertainty
Reserve Bank Governor Michele Bullock commented, “We are mindful of not adding to the uncertainty, and to that end, it’s too early for us to determine what the path will be for interest rates. Our focus remains on our dual mandate for price stability and full employment.”
Australia remains well placed to handle global volatility, including concerns about potential US tariffs and trade disruptions.
Key Economic Challenges Impacting Construction and Property
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Global Economic Uncertainty: Trade tensions, policy shifts, and potential financial market disruptions could affect construction supply chains and offshore funding availability.
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Australian Household Financial Stress: Despite strong financial positions for many households, high interest rates and persistent inflation are pressuring some homeowners, especially those with high debt-to-income ratios — a trend that may affect housing demand and new construction projects.
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Refinancing Challenges: Some borrowers will face higher refinancing costs as pandemic-era debt matures, potentially limiting access to capital for property development and renovations.
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Trade Policy and Supply Chains: Uncertainty around US trade policy is already influencing Australian business planning. Any supply chain disruptions could impact material costs and timelines in the construction industry.
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Productivity Recovery: The RBA’s forecasts rely on strong productivity growth. Without it, wage pressures and construction labour costs could rise, affecting project budgets and profitability.
Looking Ahead
The Reserve Bank of Australia’s following decisions will be critical for builders, developers, and property investors. Infinity Constructions will continue monitoring economic trends to help clients navigate the evolving market conditions.
About Infinity Constructions
With over 33 years of industry experience and a portfolio of more than 600 completed projects, Infinity Constructions is a trusted name in commercial, residential, and industrial building across Sydney and Melbourne. As a multi-award-winning Tier 2 builder, we specialise in delivering complex and high-value projects with a focus on quality, innovation, and client satisfaction.
Our diverse portfolio spans commercial offices, hospitality, student accommodation, aged care, health and education, and adaptive reuse projects. As a leading commercial construction company, we are proud to maintain a 4.5-star Gold iCIRT rating, reflecting our commitment to quality, safety, and environmental sustainability.
At Infinity Constructions, we are known for:
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Early Contractor Involvement (ECI) expertise, helping clients streamline project delivery and maximise value.
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A client-focused approach, ensuring transparency and collaboration throughout every stage of construction.
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Award-winning innovation in modular construction and sustainable building practices.
As economic conditions evolve—including changes in the RBA cash rate, inflation, and financing trends—Infinity Constructions remains dedicated to helping our clients navigate the challenges and opportunities of the Australian construction industry.
Contact us today to discuss how we can deliver excellence on your next construction project in Sydney or Melbourne.
