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Australia’s official cash rate has fallen below 1.0 per cent for the first time in history with some economists saying it will stay down for at least another two years. At its October meeting on Tuesday, the Reserve Bank of Australia made the widely expected decision to drop the rate to 0.75 per cent — the third time it has wiped 25 basis points off since June. And the cuts are expected to keep coming
Three of Australia’s four big banks have failed to pass on today’s full rate cuts to their home loan customers. ANZ – ANZ said it would pass on the Reserve Bank’s 0.25 per cent cut to the cash rate to its borrowers, the remaining three major banks all responded by holding back part of the benefits from borrowers paying off their mortgages. CBA – CBA Owner-occupiers and investors paying principal and interest on standard variable
Here are the winners and losers from the interest rate cut. WINNER: BUSINESSES Lower interest rates mean households with mortgages will have extra money in their pockets and importantly more money to spend in shops. WINNER: REAL ESTATE AGENTS Those working in the property market have been doing it tough due to drops in house prices in recent years. The rate cut should help stabilise prices in the market. WINNER: EXPORTERS The rate cut is
Commonwealth Bank and National Australia will pass on the Reserve Bank’s cut in official interest rates to borrowers in full, in contrast to ANZ Bank and Westpac, which are defying the government and only passing on part of the reduction. CBA and NAB both said on Tuesday they would reduce all standard variable rate home loans by 0.25 percentage points. Late on Tuesday, Westpac cut owner-occupier loans by 0.20 percentage points and interest-only investor loans

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