A July mortgage rate cut is “in the bag,” according to financial comparison experts.
Nearly 88 per cent (30 out of 34) of experts and economists who took the Finder’s RBA Cash Rate survey said they believe the Reserve Bank will cut the cash rates in July, bringing it down to 3.60 per cent.
If the banks pass the rate cut, it would save Aussies with a $500k mortgage around $1613 per year.
Australians with a mortgage of $1 million will save an average of $269 per month, or $3226 per year.
Head of Consumer Research at Finder Graham Cooke said another rate cut would give mortgage holders a much-needed confidence boost.
“We’ve seen two cash rate cuts already, but homeowners are chomping at the bit for more,” he said.
“Inflation is continuing to reduce, which means the RBA is likely to cut and the banks will be under a lot of societal pressure to pass on the full rate cut again in July.”
Matthew Peter from investment firm QIC said “a July cut is in the bag”.
“Underlying inflation is within the RBA’s target band and falling, consumer spending is disappointing and the market is expecting a rate cut.
“No reasons for the RBA to wait,” Peter said.
The majority of experts who spoke to Finder also said they are predicting another rate cut in August.
Just over half of the experts polled also predicted a rate cut in November.
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