RBA cuts interest rates by 0.25pc

The RBA this afternoon cut the interest rates by 0.25pc to 3pc fuelled by fears of the mining boom slowing down.

The cash rate hasn’t been this low since the global financial crisis and it has been tipped to go lower at the start of the new year.

Now we just have to wait and see what the banks pass onto us.  Since May this year the cash rate has fallen by 1.25pc and yet the Australian public have only seen 2/3 of that benefit the rest is lining the enormous profits of the banks.

Going on the Bank of Queensland’s early action of only passing on 20 of the 25 basis points I think the remaining banks will follow suit and some will even keep more for themselves.

It’s amazes me that the health of our economy is placed into the hands, not of the our government, not of the RBA but of private companies whose sole purpose is to make a profit for their share holders.

Leading up to Christmas a drop of 0.25pc will be a welcome relief for many households.

The cost of borrowing is getting lower and it is becoming more affordable to get that dream home or start that renovation maybe that’s something to consider over the Christmas break.

 

Brett Richardson
 

Building Designer, Draftsman and design expert

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