Newcastle Permanent will review its lending and deposit interest rates after the after the Reserve Bank cut official interest rates to 0.75 per cent on Tuesday. The third cut in five months brought the Australian cash rate to an unprecedented low.
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"Following the review of our interest rates, we will advise any customers who have products affected by any changes," CEO Bernadette Inglis said.
"We understand that customers will be keen to understand the outcome of our review, and expect to make an announcement shortly."
The move was intended to kick start a lagging national economy, igniting wage growth and inflation, and encouraging household spending, but a side effect could be that house prices will rebound after a recent downturn.
In real terms, the quarter-of-a-percent cut will likely mean lower home loan rates for most, but if earlier cuts represent any trend it is likely major banks will pass on only a partial cut to borrowers.
In Newcastle, property prices rose 0.6 per cent in September, while the rest of the Hunter showed a one per cent boost to median house prices after a 0.8 per cent drop in August.
Nationally, it seems to market anticipated the cut as almost certain. The share market was posting small gains on Tuesday morning ahead of the decision, which the ABC reported was tipped as an 80 per cent chance to occur.
The Australian dollar dipped and was buying 67.34 US cents on Tuesday afternoon.
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Simon McCarthy
Simon McCarthy is a journalist working at the Newcastle Herald in NSW. He writes news and features, and produces video and multimedia, for the Herald and Herald Weekender magazine. He contributes regularly to the Newcastle Herald’s daily Topics column, and is the co-creator and producer of the Toohey’s News podcast. McCarthy has worked as a journalist in regional NSW since 2013. He joined the newsroom of the Newcastle Herald in 2017 from the Northern Daily Leader in Tamworth where he worked from 2015 to 2016.
Simon McCarthy is a journalist working at the Newcastle Herald in NSW. He writes news and features, and produces video and multimedia, for the Herald and Herald Weekender magazine. He contributes regularly to the Newcastle Herald’s daily Topics column, and is the co-creator and producer of the Toohey’s News podcast. McCarthy has worked as a journalist in regional NSW since 2013. He joined the newsroom of the Newcastle Herald in 2017 from the Northern Daily Leader in Tamworth where he worked from 2015 to 2016.
