A number of components are shaping the outlook for 2025. The Reserve Financial institution of Australia’s determination to maintain the money fee at 4.35% all through 2024 compressed internet curiosity margins, however potential fee cuts this 12 months may add recent challenges for banks, albeit with much less influence than through the pandemic as a consequence 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.