The Reserve Bank of Australia today decided to lower the official cash rate
The Board has decided to lower the official cash rate by 25 basis points to 3.25%. This cut has come after three consecutive holds.
The recent drop in commodity prices could explain why an interest rate cut was considered necessary. Plus, minimal growth in employment, the increase of utility prices and low consumer spending figures may have also influenced the RBA’s decision.
This rate cut may increase housing affordability, 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.
If you would like to find out if your lender is passing on the rate cut, or if you have questions about today’s announcement, please get in touch.
