Rate cut good for local business
THE interest rate cut announced by the Reserve Bank yesterday has been hailed as good news for the real estate market and for small businesses in Bundaberg.
The Reserve Bank announced it would cut the cash rate from 4.5% to 4.25%, after its December board meeting.
It is the second consecutive month the rate has been cut.
Assuming the retail banks pass on the full rate cut, it will mean the average homeowner would save just under $50 a month on a $300,000 mortgage.
Remax Precision Real Estate principal Scott Mackey said it was fantastic news.
"After the last interest rate cut, we found there were increased inquiries in the real estate market," he said.
"This starts to help people's confidence."
Mr Mackey said it would be good for investors.
"It's good for people coming out of Gladstone - it will position Bundaberg as a more attractive market," he said.
While the rate cut will mean some pain for self-funded retirees, Mr Mackey said at least small business owners would get some relief.
"This will give people an extra $40 or $50 in their pocket that they might spend on an extra trip to the movies or a meal out at a restaurant," he said.