Canstar’s Steve Mickenbecker discusses The Reserve Bank of Australia’s decision to cut interest rates on Tuesday 6th August. The decision comes as no real surprise with the market already factoring in a decrease in interest rates.
The end of the mining boom leaves no clear successor to create activity and investment in the economy, however Monetary Policy should fill that gap and stimulate investment.
Steve is expecting the banks to pass on the interest rate cut to consumers, based on the last rate movement where 92% of the 200 lenders on the Canstar database passed on the full or near full interest rate cut.
The interest rate cut is a positive for Mortgage holders, giving people the opportunity to save per month based on the average 0,000 loan over 25 years.
The decision to cut interest rates will unfortunately be passed onto savers. However people can still do the best with their money by moving to one of the top rates. For more information please visit the Canstar website:
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