| 06.12,11. 09:53 PM |
Reserve Bank of Australia cuts interest rates by 0.25pc
December 06, 2011
WITH less than three weeks to go until Christmas, homeowners today have reason to celebrate early after the Reserve Bank chose to slash interest rates by 25 basis points to 4.25 per cent.
With the Reserve Bank not meeting next until February, the move has been welcomed by analysts and economists alike, with markets this morning pricing in a 65 per cent chance of a cut, largely as insurance against the debt crisis engulfing Europe.
Homeowners will get a further reduction of around $50 on their monthly repayments on an average $300,000 mortgage, assuming banks pass the cut on in full to mortgage customers.
The Bank of Queensland has already announced it would pass on the full interest rate cut. All eyes now turn to the nation's big four banks to see whether they will also pass on the Reserve Bank's cut in full.