Melbourne Cup winners weren’t the only people cheering at yesterday’s ‘race that stops a nation’.
Home owners also had a reason to celebrate following the Reserve Bank’s announcement to cut interest rates for the first time in more than 2 1/2 years.
Widely anticipated by the majority of economists, the central bank yesterday lowered its cash rate by 25 basis points, down to 4,5 per cent.
Despite initial uncertainty whether the top four banks would pass on the rate cut, both CBA and Westpac moved quickly to confirm to match the RBA. Westpac’s standard variable rate now stands at 7.61 per cent, following a .25 basis point trim. CBA have also cut their cash rate by the same figure on their variable home package to between 7.66 and 6.86 throughout their product range.
Meanwhile today, NAB became the only major to go against the grain by announcing only a 20 basis point reduction but remains the lowest of the big four banks at 7.46 per cent. Like CBA and Westpac, ANZ also announced a .25 basis point reduction coming in at 7.55 per cent.
Following the update ipac founding director and financial media commentator Paul Clitheroe, appeared on Nightlife ABC to discuss the days events and how you can make the most of the money you have in the build up to the holiday season.
What did you make of the rate cut yesterday? Did it affect you? Why not let us know by commenting on the blog or emailing us at email@example.com
In the meantime if you missed the interview you can click below to hear it again.