RBA interest rates

The Reserve Bank has cut interest rates by 0.5 per cent.

The 50 basis point fall comes on the back of evidence the economy is struggling with weaker-than-expected inflation figures released late last month.  The official interest rate is now 3.75 per cent.
It is good news for mortgage holders who were earlier this year hit with out-of-cycle rises by many lenders.
Each 0.50 per cent drop in interest rates slices about $120 off the monthly interest cost of an average Australian mortgage.
All eyes will be on the financial institutions to see if they follow suit. It is possible lenders could pass on a smaller proportion of the official drop to their own customers.
For more information on your proporety portfolio please contact Kerry at Optim Financial 03 9078 2290.