Welcome news from the Reserve Bank this week, with the fifth interest rate reduction in 12 months.
Interest rates have fallen by 1.5 % since November last year, to reach the current cash rate of 3.25%.
Whilst this news is a positive move towards recovering the ailing property market and flagging economy, many industry commentators are now questioning will the banks pass on the rate cut in full or at all, and what will happen in the months leading up to the end of the year?
A 25 basis point rate reduction means a saving of around $50 a month on a $300,000 mortgage. If the banks pass this on in full this month, and we see a further rate reduction in November, it could be a wonderful Christmas present for mortgage holders and retailers this year !
WE CERTAINLY HOPE SO !!