Investors and mortgage holders can breathe a sigh of relief today with the Reserve Bank of Australia deciding to lower the current cash rate.
Today the board has decided to lower the official cash rate by 25 basis points to 2.75%, in the first rate cut since December 2012.
Low inflation rate figures for the March quarter, and news surrounding the proposed Medicare levy rise, may have influenced the central bank’s decision to cut the cash rate. Rising unemployment and slow economic growth figures could have also given cause for today’s cut.
This rate cut should help to improve confidence in the housing market, however we are yet to find out if the lenders will follow the RBA and pass on the rate cut in full. Over the next few days we will find out which lenders will adjust their rates as a result of today’s decision.
If you have questions about your current circumstances, or today’s RBA announcement, please get in contact today.
