Understanding the cash rate cuts

Many homeowners and investors have been rejoicing recently following the Reserve Bank of Australia’s (RBA) decision to cut the cash rate to an historic low of 0.75% last month. If you’re confused about what the cash rate is and how it affects your mortgage, you’re not alone. It was recently reported that 86 percent of Australians don’t know what the cash rate is. Let us explain. What is the cash rate? The cash rate is the interest rate on overnight loans provided to banks. Banks lend each other funds on an overnight basis to meet their daily cash needs and the cash rate is the interest rate they pay. On the first Tuesday of every month, except January, the RBA board meets to set the cash rat

While Brisbane is regarded as the affordable eastcoast capital by many, we still have our fair share

Of course, our brilliant outdoor lifestyle combined with easy-going existence, simple CBD access, river and mountain aspects as well as relative abundance of space all combine as attractive foundations for creating quality property desire. While the number of prestige sales in 2019 has actually been lower than in previous years, there’s still been plenty of ooh-la-la property that’s changed hands at the rarefied end of the city’s price parameters. Sales: For starters, there was 95-99 McConnell Street, Bulimba, which is now under contract for $8.4 million. A palatial five-bedroom, three-bathroom (plus two powder rooms), double-garage home all set on a 1,473 square metre site with 32 metres of

RBA Interest Rate Decision - November 2019

At its meeting today, the Board decided to leave the cash rate unchanged at 0.75 per cent. While the outlook for the global economy remains reasonable, the risks are tilted to the downside. The US–China trade and technology disputes continue to affect international trade flows and investment as businesses scale back spending plans because of the uncertainty. At the same time, in most advanced economies, unemployment rates are low and wages growth has picked up, although inflation remains low. In China, the authorities have taken steps to support the economy while continuing to address risks in the financial system. Interest rates are very low around the world and a number of central banks ha

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