Australias Interest Rate plummets to a Record Low 0.5%
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Predictions were correct with Australia's Interest Rate plummeting to an all time Record Low 0.5%
The Government has also instructed the major Banks to follow suit and reduce the home loan rate to help all Australians.
All 4 major banks, Westpac, NAB, Commonwealth and ANZ have responded to the Reserve Bank of Australia’s (RBA) record rate cut.
Westpac immediately reacted to the RBA’s decision in cutting the interest rate by passing on the 25-basis point cut in full to its home loan customers.
Commonwealth Bank and NAB followed suit within minutes and the ANZ was the last of the big four to announce it would pass on the cut by 0.25 per cent to 0.35 per cent.
Smaller lenders Macquarie, NEO Bank and Athena Home Loans also passed on the cut in full.
It’s good news for home-owners as a 0.25% interest rate drop on an average $400,000 home loan over a 30 year period can equate to monthly principal and interest repayments falling by $56 to $1,794.00
The reduction will come into effect for NAB and ANZ customers on March 13, Westpac on March 17, while Commonwealth Bank borrowers will need to wait until March 24.
The RBA has also released data showing that Australia’s GDP increased in the December 2019 quarter by 0.5% which is very positive news indeed.