Interest rates dropped again
Tuesday February 3, 2009
At 2.30pm, the RBA announced that interest rates have been lowered by 100 basis points to 3.25 percent.
Interest rates have been cut by 400 basis points since September 2008 in attempts to help boost Australia's economy. This latest cut makes Australian interest rates the lowest they have been since 1964 - a 45 year low.
Prime Minister Kevin Rudd and Treasurer Wayne Swan have urged Australian banks to pass on the interest rate cut to homeowners. Australian banks have not yet announced any interest rate cuts.
The Reserve Bank took into account the $42 billion stimulus package that was announced by the Australian Government earlier today. This new stimulus package has been designed to help boost the Australian economy to help Australia avoid the overseas economy troubles.
If the banks pass on the full 1 percent, homeowners with an average $250,000 on variable mortgages will see potentially $162 taken off their monthly payments.
Take a look at our personal loans calculator to estimate your potential savings.