RBA slashes interest rates delivering cash boost for millions of Aussies
The decision to cut interest rates by 25 basis points was supported by falling inflation. Headline inflation eased to 2.1 per cent in June, down from 2.4 per cent, while trimmed mean inflation came in at 2.7 per cent, down from 2.9 per cent.
Today's 0.25 per cent cut means owner-occupiers with a $600,000 mortgage could save $89 a month on their home loan repayments. Across all three cuts, this brings total savings to $272 a month, provided their bank passes on the cut in full.
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New Zealand couple move to Australia after 'overwhelming' $20,000 cost to start familyWhat does today's cut mean for borrowers?
Canstar data insights director Sally Tindall told Yahoo Finance she expects banks will 'step up to the plate' and pass on this rate cut in full to borrowers once again.
'This will be the third cut after 13 rate hikes. It's not time to be hitting the brakes on passing on rate cuts,' she said.
But with more interest rate cuts predicted by experts and economists, Finder head of consumer research Graham Cooke said the banks might not be as generous in the future.
'Lenders might start to pull back and offer smaller cuts to customers, as we observed during the last round of cuts,' he said.
Following today's cut, the average variable rate will be 5.54 per cent. If your rate is above the 5.50 per cent mark, both Tindall and Cooke said it could be time to find a better deal.
The next RBA meeting will be on September 29 and 30.
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