Growing case for July rate cut
finance-advice

Growing case for July rate cut

By Phillip Tarrant

With dwelling commitments and consumer confidence falling at an unprecedented rate, the possibility for a July rate cut is increasing - which will be welcome news for most property investors.

Data from the Australian Bureau of Statistics last week revealed that dwelling commencements fell sharply in the March 2012 quarter and have been declining since the middle of 2010 to run at an annualised level of 122,492.

If the Reserve Bank of Australia does choose to cut the official cash rate next week, all eyes will be on the majors to see if they pass any or the entire rate cut on to their borrowers.

Last month, ANZ was the only major bank to pass on the rate cut in full.

The lender’s decision to break ranks with the Reserve Bank and review its cash rate on the second Friday of every month meant the other majors only had to wait a couple of days after the rate announcement to see what their major peer did with rates.

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Highest annual price growth - click a suburb below to view full profile data:
1.
SOLDIERS POINT 48.92%
2.
BLUE BAY 43.96%
3.
BERKELEY VALE 42.74%
4.
LEMON TREE PASSAGE 42.55%
5.
NORTH NARRABEEN 40.19%
Growing case for July rate cut
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