The Reserve Bank has announced a 25 basis point cut to interest rates earlier than economists had anticipated.
The RBA was widely expected to lower rates later this year but most had anticipated that they would remain on hold this month.
The official cash rate is now at its lowest level since October 2009.
RateCity spokesperson Michelle Hutchinson said the cut will be a great help to families with variable mortgages.
"However, we don't expect many lenders will pass on the full rate cut.
"The Reserve Bank has cut the cash rate by a total of 75 basis points in May and June while lenders have dropped their standard variable home loan rates by 53 basis points on average, keeping 22 basis points from their customers."
Minutes after the cut was announced, the Bank of Queensland announced that it will lower their rates by 0.2 percent.
Author: Nick Pearson
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