What Happens if the RBA 50bp Rate Cut?
If the RBA decides on a 50 basis point (0.50%) cut, the cash rate would move from 4.35% to 3.85%. Here's what that means for mortgage repayments.
Current cash rate
4.35%
Rate after 50bp rate cut
3.85%
-50bp
Mortgage repayment impact
Based on a 30-year principal & interest loan with 2.5% bank margin above the cash rate.
| Loan size | Current | After 50bp rate cut | Change |
|---|---|---|---|
| $300,000 | $1,966/mo | $1,867/mo | -$99/mo |
| $500,000 | $3,276/mo | $3,111/mo | -$165/mo |
| $750,000 | $4,914/mo | $4,667/mo | -$248/mo |
| $1,000,000 | $6,553/mo | $6,222/mo | -$330/mo |
Which meetings price a 50bp rate cut?
| Meeting | Probability |
|---|---|
| December 2027 | 100% |