Rate cut expected today: RACQ Bank

RACQ Bank expected the Reserve Bank of Australia (RBA) to drop the cash rate at its monthly board meeting on Tuesday and said any cut would spell good news for Queensland homeowners.

CEO Michelle Bagnall said if the cut occurred home loan rates were expected to follow, helping ease living pressures on Queensland families.

“If the RBA cuts rates today that’s a really good thing for Queensland households,” Ms Bagnall said.

“If rates drop to the level many are predicting it could mean up to $50 per month back into the pockets of people with existing loans. That’s based on an average home loan of about $340,000.

“It would also be a bonus for first home buyers who have been finding it challenging to get into the market.”

Ms Bagnall said if the cut didn’t occur it was still timely to remind homeowners to consider if they are getting the best deal.

“If rates drop that’s fantastic but even if the RBA decides to hold our advice is to shop around”

“The price of electricity, fuel and other weekly expenses continue to rise and we understand Queensland family budgets are getting tighter each month.

“Pick up the phone and ask your bank for a better deal. Call around other lenders and if there’s a better option elsewhere think about moving.”

Ms Bagnall said while those with loans would benefit from an RBA decision to drop rates, the same could not be said for Queenslanders with deposits.

“If rates are cut we know this is a good thing for home owners but it may not as good for people with deposits,” she said.

“If you’re a self-funded retiree who uses your deposits as a source of income we’d encourage you to look around for the best deal just as you would if you were looking for a home loan.”