So if your mortgage is bigger than that – and let’s face it, lots of mortgages are – then you’re in for an even bigger savings bonanza.
ANZ is the only ‘big four’ bank that did not pass on the full 0.25 percentage point cut, blaming higher funding costs for its 0.19 percentage point drop, according to the Sydney Morning Herald.
The Reserve Bank of Australia (RBA) cut interest rates to an unprecedented level on May 3 following the release of inflation figures below the target range the RBA targets for healthy economic growth.
Those boffins interested in monetary policy can read the RBA’s full statement.
But wait – there’s more! When you see one interest rate cut, there’s bound to be another somewhere nearby, according to AMP’s Shane Oliver.
“Interest rate moves are a bit like cockroaches — if you see one there is usually another one lurking nearby,” he told the ABC.
Bets are on for the next cut to happen in August 2016. Let’s see if the economists’ crystal ball forecasts come to fruition.