00:00After the RBA's first rate cut in four years, the question for home borrowers now is, when
00:11will their bank deliver?
00:21Some lenders like Athena have already passed the rate cut on, but three of the big four
00:26banks and Macquarie are holding out until the 28th.
00:30It's 4th of March for Westpac customers, and the 10th for HSBC home borrowers.
00:37We could see the lowest variable rate drop to around 5.5%.
00:45While delaying rate cuts is good for bank profits, it's bad for this mortgage broker's
00:50clients.
00:51They're losing money every day in interest payments, and it's making them falling behind
00:59paying their home loans off as soon as possible.
01:02Adding to the pain, wage growth has fallen to its lowest level in more than two years,
01:07slowing from 3.6% in the year to September, to 3.2% in 12 months to December.
01:14That's in line with the RBA's forecasts.
01:17Australians are still getting a real pay rise though.
01:21With wages rising above inflation, thanks in part to rent and energy subsidies.
01:27While borrowers wait for lenders to pass on the Reserve Bank's rate cut, the RBA Governor
01:32has poured cold water on the prospect of the relief ramping up.
01:37However, Michelle Bullock's caution is also by design, to prevent spending sprees which
01:42could see inflation rise again.
01:45We think that there's only one more interest rate cut coming this year, and we think that's
01:49likely to arrive in the third quarter of this year.
01:51Welcome news for this family, when it comes.
Comments