For the first time since August 2016 ...
The RBA has reduced the official cash rate by 25 basis points to a low of 1.25% - with the cut being predicted by most industry pundits (as in 91% according to comparison website Finder.com.au).
The shift in expectations followed RBA governor Philip Lowe's concession earlier this month that the Board would "consider the case" for a rate cut in June, in light of flat inflation growth, subdued wage growth and weaker than expected labour market conditions. ( www.theadviser.com.au )
As at the time of publication we know that:
- NAB is the second of the Big Four to pass on the cut in full - effective 14 June;
- CBA was the first to pass on the entire 25 basis points - effective 25 June;
- ANZ has announced it will decrease variable home loan rates by 0.18 per cent - effective 14 June;
- RACQ Bank will pass on the full rate cut;
- Westpac is yet to make a call
- updated 5/6/2019 - Westpac is the last of the Big Four to apply the rate cut - 20 basis points - effective 18 June.
DID YOU KNOW?
The Australia 10Y Government bond decreased 0.79% since the beginning of 2019 - according to trading on a contract for difference (CFD) that tracks this financial market. Historically, the Australia Government Bond 10Y reached an all time high of 16.5 in August of 1982 and a record low of 1.47 in June 2019.
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