1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Property News

Second reduction in cash rate by RBA

December 07, 2011

A second cut in the cash rate by the Reserve Bank of Australia (RBA) has been delivered by the regular council meeting on December 6.

RBA governor Glenn Stevens announced that the new rate of 4.25 per cent will come into effect on December 7 and was made in response to the broader outlook for inflationary factors.

Speaking on the monetary policy decision in a statement, Stevens asserted: "The reduction in the cash rate as a result of the Board's previous decision flowed through to lending rates, which are now around their average level of the past 15 years.

"Accordingly, the Bank's current judgement is that inflation is likely to be consistent with the 2 to 3 per cent target in 2012 and 2013, abstracting from the impact of the carbon pricing scheme."

Stevens also noted that CPI inflation had remained above the target set by the RBA, but was likely to recover following the improved production levels expected later this financial year.

For residential property owners, the question is whether or not the banks will pass on the savings rate to them in full.

Some experts have predicted that the reduction of 25 base points could mean that mortgage holders cut an average of $47 off their monthly repayments - allowing them to pay their hikes off sooner.

Related Articles

Former industrial precincts to become residential hubs

The New South Wales government has announced plans to turn two former industrial areas in north ...
read more

Perth city budget raises fees but aims to revitalise city

The City of Perth budget for 2014/15 was passed on June 25, setting the stage for the ...
read more

Plans in motion for 'Brisbane's backyard'

Walkabout Creek will see a $2.5 million investment from the Queensland government, according ...
read more

Latest Articles

Growing strength of Melbourne market highlights capital property boom

Owners of property in Melbourne looking into selling a house could be interested in securing a ...
read more

Lending rates for new homes increase during May

First home buyers could be in luck over the coming months, with the Australian Bureau of Statistics ...
read more

Rising market confidence across South Australia highlights residential opportunities

Australia's real estate market has grown significantly over the last few months, with regions ...
read more