The Reserve Bank has has announced another interest rate cut bringing the cash rate to a new record low of 1.50%.
RBA governor Glenn Stevens said very subdued growth in labour costs domestically and very low cost pressures globally meant inflation was expected to remain quite low for some time.
“The board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting,” Mr Stevens said in a statement on Tuesday.
Straight after the RBA decision to cut the cash rate by 0.25%, CBA announced they would pass just 0.13% of the cut to owner occupiers and property investors. It’s standard variable rate for owner occupiers will be at a record low of 5.22% and 5.49% for investors from August 19th.
NAB reduced its standard variable interest rate by 0.10% to 5.25 per cent from August 19th. It is also cutting its standard variable business rate lending products by 0.10% per annum.
ANZ cut all it’s standard variable home loan rate by 0.12%, which would lower the owner occupier rate to 5.25% and investors to 5.52%.
Westpac announced they would cut variable home loan rate for owner occupiers by 0.14% to 5.29% for customers on principal and interest repayment loans, while those paying interest only loans would see the rate fall by 0.10% points to 5.33%.
Westpac’s investment property loan customers would see their rate cut by 0.14% to 5.33% for principal and interest loans while those with interest only loans would have the rate reduced by 0.10% to 5.50%.