Three observations from Canstar following OCR announcement
Today’s Official Cash Rate announcement should mean better interest rates for home loan customers and people in the market looking for a home loan, as lower rates stimulate activity in mortgage lending.
Savings interest rates are expected to drop even further. This could affect retirees who depend on interest income from deposits to supplement their living expenses. It could also direct people to shift their money from secure bank investment products to riskier forms of investment.
With the dollar dropping, we expect to see petrol prices increase, which will impact other household expenditure i.e. food, entertainment and utilities.
For additional commentary from the Canstar team about today’s OCR announcement, head to our website.