RBA cuts rates again

Households struggling with hefty mortgage payments have scored another win with the Reserve Bank announcing a further cut to official interest rates.

The central bank’s 25 basis point-cut in the official cash rate to 3.85 per cent, announced on Tuesday afternoon, had been widely predicted by economists.

The announcement, which came at the end of the bank board’s two-day meeting, is only the second cut to mortgage interest rates in Australia in almost five years.

Assuming banks pass the latest cut on in full, it will mean the median mortgage-holder with a $600,000 debt will pay about $90 less a month in interest.

Reference: The New Daily