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RBA Interest Rate Decision – July 2019


The RBA has cut the official cash rate by 25 basis points to a new record low of 1%. 

So, why has the RBA cut the cash rate again, after cutting the cash rate to the previously historic low of 1.25% on June 4? 


RBA Governer Phillip Lowe says this second rate cut was made to support employment growth and provide greater confidence that inflation will be consistent with the medium-term target. Lowe’s additional comments below re-iterate those made by the RBA post the June rate cut.

The outlook for the global economy remains reasonable. However, the uncertainty generated by the trade and technology disputes is affecting investment and means that the risks to the global economy are tilted to the downside.

Conditions in most housing markets remain soft, although there are some tentative signs that prices are now stabilising in Sydney and Melbourne. Growth in housing credit has also stabilised recently. Demand for credit by investors continues to be subdued and credit conditions, especially for small and medium-sized businesses, remain tight. Mortgage rates are at record lows and there is strong competition for borrowers of high credit quality.

Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy. It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target.


Given the dust has only just settled from the round of rate cuts in June, it will be interesting to see how lenders respond this time.

As always, we’ll eagerly await the response from lenders.

Firstly, so we can let you know what’s happening with *your* interest rates.

But more importantly, so we can potentially identify opportunities for you to save interest.


*RBA’s Media Release can be found here.


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