THE Reserve Bank has slashed interest rates by 75 basis points to 5.25 per cent and economists say borrowers can look forward to more cuts in coming months.
Today's 75 basis point cut beat market expectations of a 50 basis point cut.
If banks pass on the rate cut in full to borrowers, home owners with an average $300,000 mortgage will see a further $150 knocked off their monthly repayments.
But by 6.30pm, just one bank had announced it was cutting its mortgage rates - and the cut was not the full amount. Almost immediately after the RBA announcement, Commonwealth Bank said it would cut interest rates on its standard variable home loan rates by 0.58 per cent, effective November 10.
Source: news.com.au
Date: 04/11/2008
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