The cash rate moved to an historic low yesterday as the RBA did back to back rates cuts. The cash rate now stands at 1%. This is the first time the RBA has cut in consecutive months in over a decade. Some economists are even predicting further rate cuts and are anticipating that the cash rate will come down as low as 0.5%.
The question now stands as to whether or not the banks will pass on the rate cuts.
Some banks have already passed on the rate cut with some second tier lenders with home loan rates as low as 3% such as Athena. ANZ also have passed on the rate cut after being heavily scrutinised after not passing on the previous rate cut.
While rates are dropping, banks are still heavily scrutinising loan applications to make sure that they do not have any delinquent loans that bring such bad press.
