RBA -Cash rate drop 25 Points

Posted Tuesday, 01 November 2011 at 15:55 by Shape Home Loans
Tagged: interest rates
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Rate cut well-timed

The RBA has cut interest rate by 0.25%, marking the end of the eleven months in which the board has kept rates steady.

The key question is: when will the bank past on this rate reduction?

Historically most banks uses RBA's announcements as a marketing decoy and when and how they past on the rate plays a huge part in their marketing strategy.

However legally they will need to past the rate cut within 14 days***

**** Note: This does not apply to mortgage mangers and some credit unions. Only tier 1 and tier 2 banks.