As widely anticipated, the Reserve Bank of Australia has today decided to reduce the cash rate by 25 basis points to an historic low of 0.75 per cent.
The Board took the decision to lower interest rates further today to support employment and income growth and to provide greater confidence that inflation will be consistent with the medium-term target.
It’s a move welcomed by the Real Estate Institute of New South Wales, with CEO Tim McKibbin calling it a win for current and future homeowners.
“This decision to cut rates will come as a welcome relief for homeowners servicing a mortgage,” he said.
“Recent Corelogic data has revealed at least 7% of homeowners are struggling to meet their loan repayments right now.”
“This rate slash is also one less economic factor working against people attempting to buy into the property market, meaning more people can realise their dream of owning a home.”
Mr McKibbin added that he expects banks to pass on the 25 basis point cut.
“The rate was changed for a reason, the big banks should do the right thing and deliver the full cut to their customers.”