Interest rate cuts May 2016
Interest rate cuts are welcome news to Australian home owners as banks respond to this months RBA decision. Yesterday, 3rd May, the Reserve Bank of Australia cut the cash rate by 25 basis points to 1.75% which is an all-time low in Australia.
This was the first rate cut by the RBA in a year and the decision was mainly influenced by the core inflation rate of 1.5% which is the lowest on record. Many economists are predicting another rate cut before the end of the year and the June inflation figures will have a large bearing on this decision by the RBA.
Yesterday’s decision prompted an immediate reaction from Australia’s big four banks with Westpac, Commonwealth Bank and NAB all announcing they will pass on the full 25 basis point cut to their customers and ANZ passing on a 19 point cut. These interest rate cuts will all take effect at the end of May.
We now wait to see what the remaining lenders on the market will do with their interest rates. The result of these interest rate cuts for Australians with a 30 year variable rate home loan of $300,000 would be approximately $47 a month.
With interest rates once again in the spotlight and pressure on lenders to provide the best options for their customers, now is the perfect time to have a home loan review. A Mortgage Broker can provide you with a free review over the phone in just 3 minutes, comparing the options of Australia’s leading lenders.