Its been a week now since the Reserve Bank of Australia announced a 0.25% cut to the official interest rate, down to 3.50%. So, where are we a week on from this decision?
Many of you will be pleased to hear that the majority of lenders have decreased their interest rates in response to the RBA’s decision.
ANZ were the only major lender to pass on the full 25 basis-point cut, trimming its standard rate to 6.80 per cent. NAB has decreased their standard variable rate by 0.21% down to 6.78%, the lowest of all the majors.
| Current Bank Interest Rates | Rate Cut |
| ANZ | -0.25% |
| BankWest | -0.20% |
| Commonwealth Bank | -0.21% |
| NAB | -0.21% |
| St George Bank | -0.18% |
| Suncorp Bank | -0.20% |
| Westpac | -0.20% |
| Macquarie | -0.21% |
What does this mean for you? Well, for those who are looking to buy a home, decreasing rates is certainly a good thing in terms of mortgage affordability.
For home owners and investors, this could be a great opportunity to refinance. Even being able to decrease your interest rate by a small amount can mean significant savings to your back pocket a month.
Time will tell if the RBA’s latest decision will help relieve some of the pressures that we know homeowners and small businesses are facing at present. At the very least, consumer confidence over the coming months will play a big part in future movements by our Reserve Bank.