JUST RELEASED: The Reserve Bank of Australia has cut the official cash rate to a record low of 0.75%. This is the third time the Reserve Bank has lowered the official cash rate in 2019, as they try to stimulate Australia’s slow moving economy. (Check out the decline of the official cash rate on the Reserve Bank’s website).
It is unknown whether banks will pass on the latest rate cut to mortgage holders. ANZ, CBA, Westpac and NAB all failed to pass on the full cuts in June and July. This is despite declaring massive half yearly profits.
The Reserve Bank certainly doesn’t plan on increasing the official cash rate any time soon. They even hinted at further cuts, saying “it is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target.”
It is unknown whether there will be further rate cuts this year. For now, all eyes are on the Reserve Bank as we await their next move.
See our recent post for information on how the official cash rate influences your mortgage. We also welcome clients to contact our office if they would like legal advice on their mortgage or loan agreement.