As many predicted, the RBA has left the official cash rate at 0.75%, deciding to wait until 2020 before making any further changes.
Yet owners can still give themselves a rate cut before Christmas by shopping around with some lenders dropping their rates by 0.75% since the RBA started cutting rates mid-year.
More rate cuts to come
Shane Oliver, Head of Investment Strategy and Chief Economist at AMP Capital, said, “In our view, there was a very strong case to cut rates again this month: the recent run of data relating to retail sales, car sales, housing construction, business investment, credit and wages growth has all been soft.
“However, Governor Lowe’s recent comments suggested a preference to “wait and assess” given the “long and variable lags” of monetary policy and this remained the case this month.”
Shane continues, “So we remain of the view that further RBA monetary easing will be required and is likely. We see the cash rate being cut by 0.25% in each of February and March taking it to a final low of 0.25%.”
The gift that keeps on giving – lower mortgage repayments
In the meantime, borrowers can cash in with a Yuletide rate cut of their own with many lenders continuing to offer terrific deals for first home buyers and owners seeking to refinance.
Tim Brown, Manager, Our Broker, explains, “With access to more than 30 lenders and hundreds of loan products a finance specialist such as Our Broker can find borrowers a suitable mortgage before Christmas.
“With the RBA taking a break until February, the Silly Season is a perfect time to check in with Our Broker, especially if you don’t know your interest rate or haven’t reviewed your mortgage since June when the RBA started cutting rates.
“There are now historically low rates available, and we can find you the perfect gift for Christmas – a suitable mortgage, which matches your financial objectives, budget and lifestyle goals.”
To discuss your borrowing needs with a finance specialist, contact Our Broker today on 02 8232 032.