Reserve Bank of Australia drops official cash rate to 2.0%
The Reserve Bank of Australia has today announced the outcome of its board meeting and it has decreased the cash rate by 25 basis points.
The official cash rate is now 2.0%.
In taking this decision it appears the Reserve Bank has reacted to growing concerns around the Australian dollar, modest economic growth and lower CPI figures . This decrease is likely to spark a fresh round of competition amongst lenders so it is a great time to borrow or review your current finance arrangements.
How does this impact the average mortgage holder? Here is a table showing how Australia’s average mortgage sizes may be affected:
|
Loan amount examples |
Likely decrease in repayments |
|
$150,000 |
$31.25 per month |
|
$250,000 |
$52.08 per month |
|
$350,000 |
$72.91 per month |
|
$450,000 |
$93.75 per month |
|
$550,000 |
$114.58 per month |
|
$650,000 |
$135.41 per month |
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.