The Reserve Bank, as expected, cut the official cash rate again Today. However, it was the level at which they cut that has taken a few by surprise.
The rate was cut by 0.5% (most people in the industry that I had spoken to had expected a 0.25% cut so this is substantially more than that which was generally expected).
Only yesterday, a key representative of one of the main banks had indicated that they were expecting 3 rate reductions before the end of the year - and 0.25% each time was around the level of cut expected each time. So, the first one being at 0.5% makes a statement..
One thing is for certain. No-one seems to be predicting a short-term upward swing. General consensus is that rates could continue on the downward trajectory which is fantastic news for borrowers.
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Get in touch and make a plan to take advantage of this time.
Paul - 021 615907 or firstname.lastname@example.org