For immediate release
Information verified correct on July 1st, 2016
- Michelle Hutchison
- Head of PR & Money Expert
- +61 403 192 994
- +61 2 9299 7602
Reserve Bank cash rate holds, for now
- 57% of experts predicted cash rate hold in finder.com.au Reserve Bank Survey
- But another rate cut is likely to hit by June 2015
- Lenders pressured to pass on full cuts to borrowers
March 3, 2015, Sydney, Australia – Following the Reserve Bank's announcement to hold the cash rate today, one of Australia's biggest comparison websites finder.com.au is warning savers to brace for another cash rate cut in the next few months.
The majority of leading experts and economists (57 percent) in the finder.com.au Reserve Bank Survey were on the money, expecting the cash rate to hold at 2.25 percent today, citing that the February rate cut needs time to filter through the economy.
Economists from three of the four major banks (ANZ, Commonwealth Bank and Westpac) were forecasting the cash rate would drop today, while National Australia Bank economist Alan Oster was forecasting no change.
However, the majority of experts (57 percent) are forecasting another rate cut is on the cards by June 2015.
Michelle Hutchison, Money Expert at finder.com.au, said lenders will be feeling the pressure to pass on the full cut if the cash rate falls further.
“Today’s cash rate pause announcement is good news for savers, who have been hit hard with cuts to their returns for over three years. But it’s not expected to last long, with another rate cut on the cards in the near future.
“After last month’s rate cut, we saw 33 lenders announce rate cuts and all of them passed on the full cut, if not more. Many savings accounts also took a dive.
“If the Reserve Bank cuts the cash rate again, the pressure is on for lenders to continue their good will by passing on the full cuts to variable rate mortgage holders as well as other borrowing customers such as for personal loans and credit cards.
“In fact, we haven’t seen any credit card providers pass on the rate cut from last month, while just one variable rate personal loan fell by Westpac.
“It’s disappointing to see credit card and personal loan holders being excluded from the last rate reprieve. We’re hoping we’ll see a better outcome for borrowers in the coming months.”
Disclaimer: the comments, forecasts, projections and other predictive statements by the panel of experts are assumptions based on currently available information. These forecasts are based on industry trends and economic factors that involve risks, variables and uncertainties. No guarantee is presented or implied as to the accuracy of these forecasts and consumers are advised to read product disclosure statements and understand if financial products are right for them before signing up.
For further information
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
finder.com.au is one of Australia’s biggest comparison websites and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au or one of its network sites creditcardfinder.com.au and lifeinsurancefinder.com.au to find better (Source: Google Analytics).