The Reserve Bank of Australia has provided an early Christmas present for Australian Families and the struggling Retail Industry by reducing the Official Cash Rate by 0.25% to 3.25% The lower Interest Rates will provide borrowers with several options as to how to benefit most from these savings…
- Paying off their Home Loan in “Greater Chunks” by retaining their repayments at their current level whilst paying less in interest
- Use the savings to make extra payments to reduce their high interest Credit Card debts
- Replenish their savings which have taken a flogging throughout the GFC
- Spend, Spend, Spend … (This is what the Retail Industry is hoping for)
The two things that all borrowers will hope for is …
- One more Interest Rate cut prior to Christmas
- The Banks will pass on the full Interest Rate cut
… FINGERS CROSSED
