The average Aussie is clueless about the cash rate: Finder

Australians are in the dark about the current cash rate according to the latest survey from finder.com.au, Australia’s most visited comparison site.

The official cash rate plummeted to 1.0% in July after the Reserve Bank announced its decision to cut the rate for a second time in 2019.

However, the survey of 1,002 respondents shows 86% – equivalent to 16.7 million Aussies – are oblivious to the new rate despite household mortgage debt sitting at $1.7 billion.

Bessie Hassan, money expert at Finder, said knowing the cash rate is crucial for anyone wanting to get ahead with their mortgage.

“If borrowers fail to keep tabs on cash rate movements, they could be missing out on a golden opportunity to save big money by either negotiating a better rate, or looking elsewhere,” she added.

The research found that the majority of Aussies (56%) think the cash rate is higher than it is, with 13% assuming it to be between 5% - 10%.

One in three (30%) Aussies believe the cash rate to be lower than it is. Just 10% of women and 18% of men could identify the correct cash rate.

Hassan said that economic ignorance is costing Australians.