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The Reserve Bank has cut the official interest rate to a fresh low of just 1.5 per cent, in a desperate effort to stoke price growth.
The RBA last cut its overnight cash rate target in May, taking it to 1.75 per cent, following weak consumer price data in the March quarter.
Most experts expect today’s rate cut to be the last, but about a third of the analysts surveyed by financial comparison website Finder are expecting more cuts, with six out of 41 expecting a trough of 1 per cent or less.
Finder’s Graham Cooke said it is important for consumers to re-evaluate their current home loan to make sure their bank is passing on the reduction in full.
“If you had a $300,000 mortgage with an average standard variable rate of 4.93 per cent and manage to get the full discount of 0.25 percentage points off your interest rate, this could pocket you almost $50 per month, or a whopping $16,325 over the life of your loan,” he observed.
Source: ABC News