Interest rates tipped to be cut Interest rates tipped to be cut Interest rates tipped to be cut
02/02/09 09:29 AM
SOUTH
Australian homebuyers can expect respite this week,
with more than $150 a month to be slashed off their
mortgage repayments.
The Reserve Bank of Australia board will meet on Tuesday for the first time in 2009 and economists are tipping a likely cut in the cash rate of up to 1 percentage point.
This will be the fifth consecutive rate cut, following the 3 percentage points taken off the cash rate in the final months of 2008.
The Reserve Bank of Australia board will meet on Tuesday for the first time in 2009 and economists are tipping a likely cut in the cash rate of up to 1 percentage point.
This will be the fifth consecutive rate cut, following the 3 percentage points taken off the cash rate in the final months of 2008.
These cuts
have given much-needed relief to South Australians,
saving the typical mortgagee with a $250,000 loan
about $450 a month in repayments. Economists expect
the RBA to implement a cut of 75 to 100 basis
points.
In a survey of 17 economists, nine have predicted a cut of 1 percentage point. "The Reserve Bank over the last couple of months has surprised all and sundry with the size of its cuts – you can't rule out even a 1.25 percentage point cut," Commonwealth Securities senior analyst Craig James said.
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In a survey of 17 economists, nine have predicted a cut of 1 percentage point. "The Reserve Bank over the last couple of months has surprised all and sundry with the size of its cuts – you can't rule out even a 1.25 percentage point cut," Commonwealth Securities senior analyst Craig James said.
Full Story