Love is in the air with an interest rate cut
It’s the month of love, with Valentine’s Day coming up on February 14, and it seems the Reserve Bank of Australia are sharing the love early with a interest rate cut all wrapped up!
Announced at the first Reserve Bank of Australia (RBA) meeting for 2015, the powers that be have decided an interest rate cut was in order, taking the cash rate down to 2.25 per cent.
Held at 2.5 per cent for a historically long 17 months, only a few industry experts accurately predicted this interest rate cut.
Choice Home Loans, our resident financial experts, explain that the interest rate cut is purely driven by the RBA's view that the economy is weaker than they expected, unemployment at a 12 year high, and wage growth at a 20 year low.
Further cuts will depend fully on the economic market conditions, but in good news, there is currently no speculation of any interest rate rises on the horizon with the RBA clearly indicating they are trying to provide some strong stimulus.
Already Commonwealth Bank and Westpac have announced they will pass on the interest rate cuts, effective as of February 20, so now we wait and watch to see if any more of the banks pass on the cut to consumers.
Choice Home Loans estimate that this rate cut will provide approximately $50 per month saving on a $350,000 home loan and that’s definitely some spare cash to love!
Use the Choice Home Loans online tools to calculate your repayments or chat to them directly at firstname.lastname@example.org or call 1300 2 CHOICE.