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 basis points to 3.00% 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 one additional gift that borrowers will be hoping to receive this Christmas is for the Banks to pass on the 0.25%p.a. Interest Rate reduction in full.
