As the country tunes in for the 2020 Melbourne Cup, the cash rate decision for November has been announced and rates have been cut.
In response to the economic impact being caused by the COVID-19 crisis, the RBA reduced the cash rate by 0.15% to a new record low of 0.1%.
In making this change the RBA has confirmed the views of many analysts that further stimulus is required to aid Australia's recovery post Covid.
It had previously stated that it sees a cash rate of 0.25% as a floor however it has softened its stance on a reduction more recently.
In the lead up to its next meeting our central bank will continue to monitor world events such as the second round of European lockdowns and the US election, while closer to home it will be hoping the easing of restrictions in Victoria and the opening of state borders will provide a lift to the economy.
Here is a table showing how Australia's average mortgage sizes may be affected:
As you're probably aware, lenders review rates independently of the RBA and some may decide to pass this rate decrease on to customers at different levels over varying time frames.
We can help review your situation to ensure you have the right loan for your circumstances, drawing on a wide panel of lenders offering loans with great features, low fees and competitive interest rates.
If you'd like to chat about the best way to manage your mortgage as the COVID-19 crisis continues to unfold, please don't hesitate to give us a call.
Kervin and Team