Rates Lowered

At its November Board meeting on Tuesday, the Reserve Bank of Australia (RBA) announced that it was cutting the cash rate to 0.10%.  A reduction of 15 basis point.

In a statement accompanying the decision, RBA Governor Philip Lowe said:

The Board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range. For this to occur, wages growth will have to be materially higher than it is currently. This will require significant gains in employment and a return to a tight labour market. Given the outlook, the Board is not expecting to increase the cash rate for at least three years.

What that means with regards to the interest rates being offered by our lenders time will tell.  However early indication is that it will result in lower fixed rates, but not much change in the variable rates on offer.