Mortgage rate cuts are on the cards after the Reserve Bank dropped the official cash rate for the first time in almost three years.
The Reserve Bank of Australia (RBA) has cut the official cash rate to 1.25 % , following its monetary policy board meeting.
The central bank’s decision was predicted by most industry pundits,RBA Cash Rate Survey reporting that of the 35 market analysts and economists surveyed, 32 (91%) predicted a cut.
Attention turns to mortgage rates,, the market will be closely monitoring the response from lenders, with some doubting that savings will be passed on in full to mortgage holders.
The big banks are sometimes slow to pass RBA rate cuts onto borrowers, but following the Hayne royal commission and recent strong words from the Treasurer Josh Frydenberg, we expect all four big banks to quickly fall into line with the RBA’s rate movements.”
“We expect all the banks and other lenders to pass through any RBA rate cut in full.”