The Reserve Bank of Australia announced a further reduction in Interest Rates of 0.25% p.a. (25 b.p.).
This is the 2nd consecutive month in which the RBA has been forced to reduce the Official Cash Rate to stimulate the Australian economy, which continues to be challenged by low growth and the increasing cost of living.
Economists have openly applauded this move by the RBA with support for further rate cuts before the end of 2012 to combat the negative impact of the Government’s new Carbon Tax, cancellation of the promised tax cuts for small business and the ongoing volatility in the European Community.
Australian families need their Banks to pass on this rate cut in full, however, as the Major Banks appear to have successful “trained” the public to expect less than this it is once again unlikely to be the case.
Whilst the majority of Australians do not see any alternate other than to accept the token offerings provided by their Banks, many borrowers have achieved significant savings by successfully negotiating lower interest rates on an individual basis. To receive an “Insider’s Tip” and discover “How to Negotiate with Banks” simply click CONTACT US.
