Business

RBA cuts rates to 3.75%

Glenn Stevens
Glenn Stevens

INDUSTRY groups have welcomed a 50 basis point cut to the cash rate to 3.75% - but the big four banks have yet to announce whether they will pass on the cut to ratepayers.

The Reserve Bank of Australia cut the official cash rate on Tuesday to a warm reception from the Housing Industry Association, National Farmers Federation and the Real Estate Institute of Australia (REIA) among other business groups.

Homeowners with a $300,000 variable rate mortgage could now save up to $100 a month on loan repayments.

While ANZ said it would review its current rates on Friday, May 11, the Commonwealth Bank, Westpac and the National Australia Bank remained tight-lipped.

"It is now on the big lenders, in particular, to restore faith with the Australian public, pass on the rate cut in full and give our economy the shot in the arm it so desperately needs," REIA chief executive Pamela Bennett said today.

Treasurer Wayne Swan said the rate cut was what "households and small business have been hanging out for".

"Homeowners are now paying $300 a year less than when the Liberals left office - that's 300 basis points lower than when the Liberals left office," he said.

Mr Swan said that the big four banks now had the capacity to pass through the full rate cut and that Australian homeowners would be expecting the banks to do so."

The banks are very profitable, the banks have the capacity to pass it through, given the fact that they are very profitable," he said.

Mr Swan said that if Australians thought they were not getting a good deal from their current bank "they should walk down the road and get a better deal".

Official Interest Rate since 1990

Daniel.burdon@apn.com.au

Topics:  banks cash rate inflation interest rates mortgages rba reserve bank of australia



Brisbane's arts and culture events centre stage

A CITY drenched in culture, Brisbane is again flaunting an arts and culture events calendar fit for a queen.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Date nights under $50

Nothing is more romantic than a picnic with a cracking view.

NOT every date has to cost you a bomb.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

Six reasons to get to Brisbane this Autumn

The Brisbane Powerhouse has free comedy on Friday nights.

AUTUMN has to be up there with one of the best seasons of the year.

The best things to do in Brisbane are FREE. Yes, FREE

Mt Coot-tha is a seriously gorgeous way to start your day.

HEADING to the big smoke doesn’t have to come with a big price tag.

WATCH: Amazing creature caught on camera at Agnes Water

Sarah Cassell took a video of this whale at Agnes Water.

Early season visitor for Agnes Water

A to Z of Woolworths Marvel Heroes Super Discs

Woolworths Marvel Heroes Super Discs are the latest craze in collectables.

What is Woolworths latest collectable craze about?

Local Partners

Miranda Kerr and fiance hang up backyard tent for wedding

MIRANDA Kerr and her husband-to-be, Snapchat founder Evan Spiegel, are set to marry today in decidedly downgrade style with a backyard wedding.

Book review: Mia Freedman's book meets her critics head on

I appreciated Freedman's blunt honesty in the book

Model Bella Hadid's see-through dress shocks in Cannes

US model Bella Hadid attends the Cinema Against AIDS amfAR gala 2017 held at the Hotel du Cap, Eden Roc in Cap d'Antibes, France, 25 May 2017.

It’s like she’s become addicted to shock value.

No room for morbid fans

Chris Cornell.

Fans want to stay in the hotel room where Chris Cornell died

Star Wars' 1977 Stormtrooper head banger confesses

A Stormtrooper is responsible for the biggest blunder in a Star Wars movie. Picture: Supplied

Man in most famous blooper in Star Wars history breaks silence

Man's amazing comeback from monster crisis

Pat O'Driscoll agents Penny Keating and Doug Webber sold 56 Agnes St, The Range at auction over the weekend.

NOT long ago, he sold his possessions to pay staff. Now he's back.

Report reveals progress on $319m airport upgrade

Aerials of the Sunshine Coast.Jetstar plane in front of the Susnhine Coast terminal, Sunshine Coast Airport.

Over two dozen government approvals needed for airport expansion

Lost dough leaves sour taste after company collapse

Kathleen and John Mahoney from Sugar and Spice Bakery were stung after the collapse of Cantro Pty Ltd and are still owed money.

Supermarket operator collapse leaves sour taste for bakery

Open for inspection homes May 25-31

Check out this weekend's homes open for inspection

How Toowoomba house prices compare in Australia

For sale sign in front of home.

Here's what $700,000 will buy you in Toowoomba, Brisbane and Sydney

Ready to SELL your property?

Post Your Ad Here!