Mortgage Relief Ahead: RBA Signals More Rate Cuts for Borrowers 💰

The Reserve Bank cut interest rates by 0.25 percentage points in August to 3.6 per cent, after July's shock 'on hold' decision. It's the third time the RBA has lowered borrowing costs this year as inflation has now fallen within its 2 to 3 per cent target range. The big four banks - NAB, Commonwealth Bank, ANZ and Westpac will pass on the rate cut in full. Since the central bank started cutting rates in February, an owner-occupier with a $750,000 mortgage will see their minimum monthly repayment, on average, fall by $340. Markets are pricing in two more rate cuts by early next year — provided the global economy doesn't deteriorate as a result of 'unpredictable' trade tensions between the United States and Australia's major trading partners, including China. Treasurer Jim Chalmers says the rate cut is very welcome relief for millions of Australians. Michele Bullock has warned because the RBA didn't lift rates as high as other countries in the past few years, there might not be much room for the central bank to lower them much further.
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