RBA makes much anticipated cash rate decision

The Reserve Bank of Australia has delivered its decision from its monthly board meeting.  Board members decided to slash the cash rate from 2% to a new record low 1.75%.

Economists are saying underlying inflation is undershooting the 2% to 3% target band, and that suggests little risk in cutting rates further.  They’d also be aiming to take the heat out of the Aussie dollar.

It will be now interesting to see how much, if any of this latest rate cut is passed on by the banks.   My mail, not much will flow through to borrowers.  We’ll wait and see.  Troy.

Posted on May 3, 2016 in Interest Rates

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