RBA rate cut: Mozo's five need to know numbers

RBA rate cut: Mozo's five need to know numbers
RBA rate cut: Mozo's five need to know numbers


Mozo’s Kirsty Lamont shares the five-need-to know numbers

A year on since its last record low rate cut, the Reserve Bank has again slashed the cash rate to a new historical low 1.75 percent. Here's the five numbers you need to know: 

36 percent

Just 36 percent of lenders passed on the full rate cut last time the RBA slashed the cash rate.

$8.88 million

This is how much lenders stand to profit in additional interest each day if they play scrooge and hold onto a potential 25 bps rate cut.  In fact, three out of the Big 4 banks raked in a collective $386.7 million from failing to pass on the last RBA rate cut in full last May. 

1.18 percent

Even if lenders pass on a rate discount, home borrowers still have good reason to refinance onto a better deal with the average Big 4 variable rate 1.18 percent higher than the lowest variable rate on the market right now.


This is how much an average borrower could save in monthly repayments if their lender passed on the full rate cut. Alternatively, if you ignore a 0.25 percent discount and keep your repayments the same, you could save more than $20,000 in interest over the life of the loan.   

3.60 percent

Savers can be rewarded with interest rates up to 3.60 percent despite a record low cash rate. This special rate is on ME’s Online Savings Account to customers prepared to make a weekly Tap & Go purchase with their linked Debit MasterCard.

Kirsty Lamont is marketing director of Mozo.

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