RCR Finance Bulletin # 21 - Wednesday 3rd December 2008
Rates Drop by 1%
The Reserve Bank of Australia (RBA) today cut official interest rates by 1% to the lowest level in six and a half years, amid signs of a significant moderation in domestic demand. The central bank lowered the cash rate to 4.25%, from 5.25%, for the first time since May 7, 2002.
It's now the 4th month in a row the RBA has cut interest rates in a bid to head off the impact of slower world economic growth on an already soft Australian economy. The reduction was more than economists expected, with most anticipating a 0.75% reduction.
RBA governor Glenn Stevens said the bank's board had judged that a further significant fall in the cash rate was warranted this month to create a more expansionary setting for the economy. "As a result of today's decision, the cash rate will be at its previous cyclical low point," he said in a statement. "Given trends in money market yields, most lending rates should fall significantly and will also reach below-average levels."
CBA, NAB and Westpac all moved quickly to cut their variable home loan rates within minutes of the RBA move, with CBA and NAB each lowering their standard variable rates by 1%, and Westpac by 0.8% at the time of sending this bulletin.
This brings further significant relief to home owners and property investors who have all been weathering the storm on their homes and property portfolio's.
Now is a great time to contact us to see how we can assist you and your friends and family with your finances.
Even if you have an existing loan, now is a great time to call us for a no obligation "Finance Health Check" to ensure you still have the right loan and finance structure.
Simply for having an appointment with us you will receive an entry into our latest competition for your chance to WIN a $9,500 Flight Centre gift voucher.
I look forward to hearing from you, simply reply to this email with your interest or call us on (03) 9726 2000.
DISCLAIMER...The information contained within this Newsletter / Bulletin is of a general nature only and is not intended to be relied upon or to be construed as the giving of professional financial, legal or economic advice. RCR Finance Pty Ltd makes no warranties or representations whatsoever regarding the quality, accuracy, or otherwise of any material contained within this Newsletter / Bulletin. RCR Finance Pty Ltd will not be held liable to readers or users of the material contained within this Newsletter / Bulletin for any loss or damage however caused resulting from the use of the material. All readers or users are advised to seek their own independent professional financial, legal or economic advice.
