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So why are economists saying a reduction to 3.6 per cent is a done deal, and how much could you save?
‘No reason to wait’
He said he would be “staggered” if the RBA does not cut the rate, “given signs of a softening labour market and a good Q1 CPI [quarter one consumer price index] report”.
The larger the loan, the greater the savings.
An owner-occupier on a $500,000 loan could save around $75 per month following a 0.25 per cent rate cut, according to Canstar. Source: SBS News
Devika Shivadekar, an economist at financial services firm RSM Australia, told SBS News an official rate cut this week should create optimism, with further relief expected in the coming months.
The ‘big four’ banks are all predicting a rate cut on Tuesday, with Westpac predicting a total of four cuts this financial cycle, in August and November, and again in February and May, taking the cash rate to 2.85 per cent.
The ‘big four’ banks are all predicting a rate cut on Tuesday. Source: SBS News
Commonwealth Bank and ANZ are estimating a 0.25 percentage point cut in August and another in November, taking the cash rate to 3.35 per cent, while NAB is forecasting 0.25 percentage point cuts in August and November, and another in February, taking the cash rate to 3.10 per cent.
