Australian Interest Rates Cut to 3.25%

In a move requested by many of those in the retail sector the RBA have reduced the variable cash rate to 3.25% from 3.5%.

This is welcome relief for business’ and mortgage holders as the Australian economy appears to be slowing.

Interest rate cuts announced by the RBA are not always passed on by the banks. Westpac, Commonwealth Bank, NAB and ANZ have not passed on the rate cuts in full this year and I expect them to do the same again. Some commentators say there is no reason for the banks not to pass on the full rate cut but we will have to wait and see.

I will keep you updated on how much the banks reduce their interest rates for variable rate mortgage holders as they are announced coming weeks.