Welcome News

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 !



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Powered by WordPress.com.

Up ↑

%d bloggers like this: