RBA Announcement Brings Good News For Home Buyers
The announcement from the Reserve Bank of Australia (RBA) today is good news for home buyers!
At 2:30pm (AEST) the RBA board announced their decision to reduce interest rates by 25 basis points to a historic low of 2.75 per cent - the first reduction this year.
This is the first time the central bank has cut interest rates below 3 per cent since it began setting monetary policy. Key economists and income strategists have stated that low inflation and a strong Australian dollar are the likely reasons for the cut.
NAB was the first of the big four banks to lower its standard variable home loan, cutting their rate by 25 basis points to 6.13 per cent per annum. The Bank of Queensland also passed on the full 25 basis points bringing their loan down to 6.26 per cent per annum. Now it’s up to the other big banks and other mortgage lenders to lower their cash rate. CommSec Chief Economist Craig James said “the standard variable housing rate stands at 6.45 per cent, still well above the lows of 5.75 per cent that held over April and May 2009, and above the previous low of 5.38 per cent in July 1968 and above the record low of 5.00 per cent set in May 1964.”
For further information, contact one of our Waterstone Finance representatives.