‘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
