By TOM HAYES
THE Reserve Bank board officially cut rates by 25 basis points last week, from 4.35 per cent down to 4.10 per cent, delivering a huge relief for borrowers.
The much-needed rate cut is the first since November 2020.
Following suit was the big banks, as Commonwealth Bank, NAB, ANZ, and Westpac all announced they would cut home loan rates by 0.25 per cent.
Governor Michelle Bullock mentioned that inflation rates are also causing hurt.
“I understand you are hurting, and I understand mortgage rates have increased a lot… but we need to get inflation down because that is the other thing that is really hurting you,” she said.
“If we don’t get inflation down, interest rates won’t come down, and you’ll be stuck with inflation and high interest rates.
“So, we have to be patient. I understand it hurts. But, it’s really important that we get inflation down.”
Following the rate cut, homeowners with a mortgage of about $500,000 can expect around $80 less on repayments every month.
More rate relief has been forecasted by the RBA statement of monetary policy.
“Participants also anticipate two further rate cuts in 2025 and another one in early 2026,” the statement read.
This forecast comes after average inflation rates are predicted to be lower than those predicted in November 2024.
With three more cuts expected up until early 2026, the official cash rate could drop from 4.35 per cent to 3.45 per cent.
WESTPAC Traralgon branch will close for seven weeks next month due to refurbishing works.
The Traralgon branch will remain open until 1pm on Friday, March 14, 2025 and reopen at 9.30am on Tuesday, May 6, 2025.
During this time, Westpac customers can complete cash transactions at any branch which includes St George, BankSA, or Bank of Melbourne, or via Bank@Post with Australia Post.
Westpac’s two closest branches to Traralgon are in Sale and Warragul.
