On Tuesday 1st October, the Reserve Bank of Australia announced another reduction to the Australian cash rate of 0.25%. This is the third reduction in 5 months bringing the new cash rate to a record low of 0.75%.
Philip Lowe, Governor of the RBA said they are prepared to ease monetary policy further in the coming months to support economic growth with economists predicting rates will drop again before the end of the year and will stay extremely low for a further two years.
The Australian cash rate is the benchmark interest rate that financial institutions pay to borrow funds which are then passed onto their customers. The cash rate influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, economic activity and ultimately the rate of inflation.
The RBA cash rate decreases have been 0.25% each month however, Lenders aren’t passing on the full decrease saying this would disadvantage customers with savings & investment accounts. Below is a list of Lenders that we work with and their rate reductions for June, July & October. We will keep this list updated as each Lender advises how are they going to respond to this latest rate cut
|RBA Cash Rate Cut||0.25%||0.25%||0.25%|
|Commonwealth Bank of Australia||0.13%||0.19%||0.25%|
Now is the time to get in touch with an Assured Lending Mortgage Broker to see how your home loan rate compares to others on the market. It won’t cost you anything to get a home loan comparison but it could save you thousands. Our service is completely cost and obligation free so give us call today for more information on the right home loan for you.
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