The Mortgage and Finance Association of Australia (MFAA) has cautiously welcomed the Reserve Bank of Australia’s (RBA) decision to lower interest rates after 12 consecutive rises.
The RBA today announced it will lower the official cash rate to 7.00%
“This is very encouraging news for borrowers. The competitive forces in the lending market will now determine how quickly borrowers receive the benefit of this announcement from individual lenders” said Mr Naylor.
“A slump in consumer confidence, with a decrease in construction and overall retail spending shows that the RBA’s strategy to slow the economy has worked. The Reserve has now obviously seen it appropriate to slightly loosen its grip.”
Mr Naylor said that market competition between lenders benefits all borrowers.
“A competitive market is important to ensure there is pressure on lenders to keep rates low.”