Pass on rates cut for families
WEST Tweed homeowners Mark and Michelle Boman welcomed the Reserve Bank's decision to cut rates this week, but now they want the banks to pass it on in full.
"This is great news and it's going to make a big difference too so many families," Mrs Boman said.
"This will definitely make things easier, especially with the cost of food and petrol going up."
Tuesday saw the RBA cut the cash rate by 50 basis points to 3.75% from the previous rate of 4.25%.
Homeowners with a $300,000 variable rate mortgage could now save up to $100 a month on loan repayments.
"We weren't really struggling before, but things were tight," Mrs Boman said.
"Now we will have extra money to put on the house and extra money to take our children overseas."
According to the Reserve Bank, housing prices have shown some signs of stabilising recently after having declined for most of 2011, but generally the housing market remains subdued.
The rates cut decision was based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated.
Real Estate Institute of Queensland's CEO Anton Kardash believes the cut was done to influences on lenders.
"It is likely the Reserve has cut the cash rate by 50 basis points as a way of unwinding some of the independent increases by lenders as well as to ensure that a meaningful reduction is passed on.
"It is imperative that lenders pass on this rate cut in its entirety to help restore economic activity and confidence levels.
"Indeed, lenders' continual excuses about higher funding costs are not only starting to sound very stale but also increasingly self-interested," Mr Kardash said.
The big four banks have been tight-lipped on whether they will pass on the cut.
While ANZ said it would review its current rates on Friday, the Commonwealth Bank, Westpac and the National Australia Bank remained tight-lipped.
Treasurer Wayne Swan said that if Australians thought they were not getting a good deal from their current bank "they should walk down the road and get a better deal."