As we expected the Reserve Bank today announced a further reduction in official interest rates to a historical low of 2.50%.
The Board took into account recent information on easing commodity prices, a depreciating dollar, the moderating of inflation and the unemployment rate edging higher. As a result the Board considered it appropriate to reduce official rates to foster sustainable growth in demand and inflation outcomes consistent with targets over time.
This will translate into a saving of about $44.00 per month on a home loan of $300,000
Our tip: Keep your repayment the same and you will save over $23,000 over the term of the loan!