This article gives a simple step by step explanation of what has been affecting interest rates in Australia over recent years and how this flows on to mortgagees.
Although the Board of the Reserve Bank of Australia has a full agenda at its monthly meetings, the one item most economists and mortgage-holders eagerly anticipate is the cash rate decision. Up, down or what's been the norm over recent times, steady?
The official cash rate is now 1.0% after the RBA’s last reduction in July 2019 in the continuing hope of stimulating economic growth.
But while the experts have been monitoring the manoeuvrings of the RBA, changes to the lending rules have seen the major banks be slow to pass on the full reductions on new loans to both investors and home owners. What does that mean for you?
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