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[/frame_right]The Reserve Bank of Australia today decided to lower the official cash rate. With inflation figures released last week showing the economy cooling, a cut to interest rates was considered a certainty. The Board decided to cut the cash rate by 50 basis points to 3.75%. For the past three months, the Board had kept the cash rate on hold, and this most recent rate cut has come as no surprise to economists.
[/frame_right]The Reserve Bank of Australia today decided to lower the official cash rate. With inflation figures released last week showing the economy cooling, a cut to interest rates was considered a certainty. The Board decided to cut the cash rate by 50 basis points to 3.75%. For the past three months, the Board had kept the cash rate on hold, and this most recent rate cut has come as no surprise to economists.
Official RBA rate cuts may help improve affordability and confidence in the housing market, but whether banks pass along the cuts in full remains an open question. 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 today’s RBA announcement, please get in touch. Lending institutions change their criteria all the time, so it’s always good to check in.
