Big banks tip more big rate cuts in 2013

Aussie homeowners can look forward to three more interest rate cuts in 2013 says National Australia Bank who are predicting the Reserve Bank of Australia will cut the cash rate to an all-time low of 2.25 per cent by September.

NAB group chief economist Alan Oster said that would bring standard variable mortgage rates to levels achieved following the global financial crisis, which saw them fall as low as 5.75 per cent.

The RBA has reduced the cash rate by 1.75 percentage points since November 2011 to three per cent. NAB's new forecast comes after another of the big four banks, ANZ, announced in December it expected the RBA to cut the cash rate to two per cent in 2013.

Source: Herald Sun