Interest rates drop to historic lows
Added on by Etairos Accounting
Yesterday’s cut to an historic low in interest rates by the Reserve Bank will shave at least $50 a month in costs for households. The RBA has cut interest rates by a quarter of a percentage point to a historic low of 2 per cent. If passed on in full by banks, home-owners with a $350,000 mortgage will save more than $52 per month, according to some bank calculations.
The cut comes one week ahead of the Federal Government's 2015 budget, which is expected to show a deterioration in the country's finances. If retail banks pass on the cut in full, mortgages rates could fall below 4 per cent for home-owners for the first time in generations. ANZ was the first bank to announce it will pass on the full cut to mortgage holders effective 8th of May. Unfortunately for Commonwealth Bank customers, they are only getting a 20 basis points reduction from the 25 offered by the RBA.
