A 55 Year Record Low

More good news for mortgage holders but more bad news for savers as the RBA reduces rates to another new 55 year record low.

The RBA statement issued today provides limited disclosure to the reasons as to why it cut rates today and not last month.

From the conversations held with some of lenders relationship managers earlier today, the RBA’s rate cut decision could be overshadowed by the release of the Budget.

However the key message noted in this statement was to support further borrowings for residential and business purposes where moderate growth has been achieved by previous rate cuts.

What ths means for us mortgage holders?

Should banks pass on the full rate cut, borrowers who are not on fixed term loans will save approxiately $600 per annum in interest based on an borrowings of $300,000.