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Speaker 1: Jack Jersey and Amanda jam Nation.

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Speaker 2: Well, we thought we'd get some information, so we're all armed,

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Speaker 2: so we know what we're talking about. Yes, the RBA

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Speaker 2: has finally approved some relief for homeowners, the first cash

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Speaker 2: rate drop in fourteen months. What does it mean? Well,

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Speaker 2: let's say good morning to Georgia Holland seven News reporter

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Speaker 2: who's in Canberra. Good morning, Georgia, good morning. So just

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Speaker 2: break this down for us. What will this do for homeowners?

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Speaker 1: Yeah, Look, it was a small rate cut from the

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Speaker 1: Reserve Bank yesterday, twenty five basis points that brings interest

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Speaker 1: rates down to four point one percent. This is the

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Speaker 1: first rate cut since November twenty twenty and really is

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Speaker 1: the first sign of hope for mortgage holders and small businesses.

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Speaker 1: And I don't think we've ever seen the big four

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Speaker 1: banks move so fast. Within seconds of the RBA announcing

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Speaker 1: that cut yesterday, there were press releases from the Big

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Speaker 1: four saying they would pass it on. But mortgage holders

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Speaker 1: won't see those savings straight away. It'll be February twenty

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Speaker 1: eight for NAB, Commonwealth Bank and A and Z customers,

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Speaker 1: and then Westpac will follow a little bit later on

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Speaker 1: March four. But smaller lenders like Athena Dave implemented that

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Speaker 1: rate cut immediately.

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Speaker 2: Are there people that won't be happy with this?

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Speaker 1: Yeah? Of course. Deposit holders sell funded retirees thereon that

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Speaker 1: interest income and a rate cut reduces their earnings long term,

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Speaker 1: making it harder to maintain maybe the lifestyle they've been

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Speaker 1: accustomed to.

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Speaker 2: But overall this is good for the economy.

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Speaker 1: Yeah, good for the economy. The RBA Governor Michelle Bullock

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Speaker 1: yesterday said this is a good sign inflation is coming down.

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Speaker 1: That's why those interest rates have been cut. But we

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Speaker 1: are a long way from interest rates coming down again

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Speaker 1: and again. Markets are predicting another two or three cuts

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Speaker 1: this year, but Michelle Bullok says that is way too confident.

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Speaker 1: Australians might need to be a little bit patient before

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Speaker 1: we see those rates keep coming down.