The banks have responded quickly to the RBA’s reduction of the cash interest rate by a further quarter of a per cent to 5.5 per cent.
The 25 basis point reduction was matched by some mortgage lenders, with Westpac, Wizard and Aussie Home Loans all carrying through the quarter per cent easing of official interest rates.
The RBA has cited both international and economic conditions as being the main rationale behind the rate cut. Concerns about a slower growth outlook for 2001 in both the US and Australia, as well as a softening employment market locally led the RBA to making the cut, which was widely expected amongst economists.
