‘Tis the season to be jolly and today the Reserve Bank of Australia delivered an early Christmas present to mortgage holders – cutting interest rates by 0.25 per cent.
The decision to drop the official cash rate to 3 per cent – the lowest level since September 2009 – follows a deluge of data showing manufacturing activity and job advertisements continued their decline while October’s retail sales fell flat.
The latest Australian Bureau of Statistics Retail Trade figures show Australian retail turnover was relatively unchanged in October 2012, following a rise of 0.5 per cent in September 2012.
Meantime, ABS business indicators show company profits are down 13 per cent for the September quarter when compared to a year ago.
Assuming lenders follow the RBA’s lead, the cut equates to a monthly $47 reduction in repayments based on a $300,000 loan amount over a 25-year loan term at the standard variable rate of 6.6 per cent.
For the official RBA statement, please visit http://www.rba.gov.au/media-releases/2012/mr-12-36.html