Interest rate reduction!
The RBA has just announced a reduction to the cash rate of 0.25% to 4.10%. Whilst the RBA will shortly provide a copy of their Minutes of their meeting we believe the reasons for the reduction to the cash rate are as follows:
- Inflation in Australia has reduced steadily over the past 12 months – a little faster than the RBA had expected. Whilst the trimmed mean is currently 3.2% it is trending down. Increases to wages and GDP are also less than expected.
- The RBA recognises that the reduction will bring about a welcome relief to many current home and business borrowers who have been struggling
- Considerable government expenditure over recent years is forecast to reduce.
- Unemployment is starting to increase.
The next RBA meeting will be held on 31st March and 1st April.
If you would like to discuss the above or your current interest rate please contact us at team@firstpointgroup.com.au
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