RBA cash rate decreased at 1%

With the uncertainty of the federal election behind it, the RBA has decided to reduce the official cash rate to 1.25% as it tries to stimulate household spending and the economy. This is the first rate move since August 2016 and I’d like to share some thoughts on why the Reserve Bank of Australia has made this decision. In making this decision the RBA has taken into account inflation being below its target range of 2-3%, continued pressure on house prices, evidence of rising levels of mortgage stress, a borrowing squeeze in response to the Banking Royal Commission, slow wages growth and continued concerns around the level of under employment. Lenders continue to review rates independently of the RBA with some making reductions. It is therefore important to review your lending options regularly to ensure they remain the most suitable for your situation. There may be different rates available from our wide panel of lenders and I’m always available to ensure you have the right financial solution for your current and future circumstances, if you’d like to have a chat about what today’s news means for you and your finances, please don’t hesitate to get in touch.
Category: News

RBA cash rate decreased at 1%

The Reserve Bank of Australia decided to once again reduce the official cash rate, this time to 1% in a concentrated effort to boost household spending and the economy in general.

In making the decision to lower rates again this month the RBA has signalled its focus on supporting employment growth as it looks to restore inflation to within its target range and provide further stimulus to the economy.

Interest rates are already at historic lows, and if lenders respond to the RBAs move by slashing their interest rates, there is an even more compelling case for you to review your lending options now.

I’m here to work through the different rates available from our wide panel of lenders with you and I’m always available to ensure you have the right financial solution for your current and future circumstances.

If you’d like to have a chat about what today’s news means for you and your finances, please give me a call today.

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