Fed: Costello calls on banks to pass on rate cut to home buyers

AAP General News (Australia)
04-04-2001
Fed: Costello calls on banks to pass on rate cut to home buyers

Federal Treasurer PETER COSTELLO is calling on banks to pass on this morning's cut
in interest rates to home buyers.

The Reserve Bank of Australia today cut official interest rates by 0.5 per cent to five per cent.

Mr COSTELLO told reporters, he's calling on Australian banks to immediately pass the
benefit of the interest rate cut to homebuyers and to small business.

He says passing on the interest rate cut should bring a standard variable mortgage
down to about 6.80 per cent, which represents a saving of $40 a month on the standard
Australian home mortgage.

He says by adding up the savings on mortgage interest rates from when the government
was elected until now, Australian homebuyers are $3,700 a year better off.

He says that's because the mortgage interest rate when the government came to office
was 10.5 per cent and it should now go to 6.8 per cent.

AAP RTV eg/daw/alt/jn

KEYWORD: RATES COSTELLO (CANBERRA)

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