Consumers to pocket more savings
With many economists tipping a rate cut of at least 0.75 percentage points in next Tuesday's Reserve Bank's Board Meeting, borrowers with a $400,000 mortgage can expect to save at least $200 on their monthly repayments.
Cumulatively, this will equate to savings of approximately $1,000 per month since the last three consecutive rate cuts of 3 percentage points.
A recent consumer survey has found that while consumer prices have fallen overall by 0.3 per cent in the three months ending 2008, rents and food prices are still relatively expensive.
For the year of 2008, rent and food prices were up 8.4 per cent and 5.6 per cent, respectively. Food prices alone jumped 2.0 per cent in the December quarter.
Source: Sydney Morning Herald