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[/frame_right]The Reserve Bank of Australia today decided to lower the official cash rate. With the latest data from the Australian Bureau of Statistics showing the Australian economy is not performing strongly, a cut to interest rates was considered a good possibility.
[/frame_right]The Reserve Bank of Australia today decided to lower the official cash rate. With the latest data from the Australian Bureau of Statistics showing the Australian economy is not performing strongly, a cut to interest rates was considered a good possibility.
The Board decided to cut the cash rate by 25 basis points to 3.50 per cent.
This rate reduction could help improve consumer confidence and therefore drive spending, but whether banks pass along the reduction in full remains uncertain. Last month we saw a massive cut of 50 basis points, however just three lenders chose to pass on the rate cut in full.
Over the next few days we will find out which lenders will be passing on this reduction, and what percentage.
If you have questions about your current circumstances, or this most recent RBA announcement, please get in touch today.
