Interest rates are going down

The Reserve Bank of Australia is tipped to cut the official interest rate to a historic new low in May 2016. Official interest rates in Australia have been set at 2.0 per cent for more than one year. The RBA is now expected to cut the rate to 1.75 per cent and possibly further in coming months.

John Caelli from industry super fund-owned bank ME, said: “There’s a high probability the RBA will cut the official cash rate by 0.25 percentage points in May and by another 0.25 percentage points by the end of 2016.”

Source: Mortgage Business