Reserve Bank slashes interest rates by 0.75% p.a.
30 minutes prior to the running of the Melbourne Cup The Reserve Bank of Australia announced a 0.75% p.a. reduction in the official cash rate.
Many lending institutions have have resisted passing on the entire0.75%p.a. rate cut stating “the high costs of funds” as their reasoning despite having announced only 2 weeks ago that the cost of funds had reduced sufficiently to pass on the balance of the previous RBA interest rate reduction. The Federal Treasurer (Wayne Swan) has confirmed that he will continue to pressure the lenders to pass on the maximum savings to borrowers. Read more
