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Lenders have passed on bulk of rate cuts: RBA



News

By Loren Webb

RBA assistant governor Christopher Kent says the central bank’s cash rate cuts have helped lower borrowing costs, particularly for new mortgage customers.

The Reserve Bank says its twin cash rate cuts have helped support the economy by lowering borrowing costs for businesses and consumers, most notably for new mortgage customers.

Assistant governor Christopher Kent says RBA data shows the average outstanding variable-rate housing loan fell by 23 basis points in June and was likely to fall by a similar amount in July, suggesting lenders have passed on the bulk of the central bank’s two 25 basis point cuts.

Dr Kent says new customers and those refinancing have particularly benefited thanks to discounting to attract new borrowers, and the RBA expects new loan approvals to build on June’s increase if property market conditions continue to improve.