<a href="https://www.apartments.com.au/developers/s-p-setia">SP Setia</a> has lodged plans for a $750 million, three-tower mixed-use precinct that would complete the long-running redevelopment of Carlton's former Carlton United Breweries site.

The proposal at <a href="https://www.apartments.com.au/new-apartments/185-195-queensberry-street-carlton-vic-3053">46-78 Bouverie Street and 185-195 Queensberry Street</a> spans a 6,468 sqm site, the last remaining undeveloped parcels within the former brewery's 2007 masterplan.

Designed by <a href="https://www.apartments.com.au/architects/cox-architecture">COX Architecture</a>, the development will comprise two purpose-built student accommodation towers and a third build-to-sell apartment tower above a shared commercial podium and basement.

Across the three towers, SP Setia is proposing 606 build-to-sell apartments and 1,499 student accommodation units containing 2,009 beds.

The apartments will sit in the tallest tower, which will rise nearly 200m and 55 storeys. It will become&nbsp;one of the more substantial new build-to-sell apartment projects at the northern edge of Melbourne's CBD.

The apartment mix is weighted toward smaller inner-city product, with 188 studios, 206 one-bedroom apartments, 192 two-bedroom apartments and 20 three-bedroom apartments

<img alt="First look: SP Setia plans three-tower finale for Carlton’s former CUB precinct" data-entity-type="file" data-entity-uuid="8271bc87-1b0a-41b7-ac73-a425ee375261" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/3_2.png?VersionId=G4lw23o90B1boX4k4dj7rdz2ZEajS9wy" />

Part of the precinct will be a large-scale&nbsp;3,684 sqm supermarket and a further 2,198 sqm of speciality retail, creating close to 5,900 sqm of new commercial space within the precinct.

But one of the biggest components of the proposal is what sits between the buildings.

Around 4,650 sqm, or roughly 72 per cent of the site, will be publicly accessible open space, incorporating plazas, pedestrian connections, landscaped laneways and retail spill-out areas.

The ground plane is intended to finally complete pedestrian connections envisaged when the CUB masterplan was first approved nearly two decades ago, stitching together Victoria Street, Queensberry Street, Bouverie Street and Swanston Street through the former brewery precinct.

Urbis said the development would "complete the CUB precinct", with the public realm providing important north-south and east-west connections through what is currently the final undeveloped portion of the masterplanned site.

SP Setia is also exploring a new linear park within the Bouverie Street road reserve, with the concept to be developed further with the City of Melbourne through the planning process.

The proposal is being pursued through the Victorian Government's Development Facilitation Program under Clause 53.23 for significant residential development with affordable housing.

The planning report acknowledges the proposed heights exceed those contemplated under the original Comprehensive Development Plan and masterplan, but argues the built-form context has changed considerably over the past two decades.

Urbis said the three towers would instead create a stepped transition between Carlton and the Hoddle Grid, rising progressively from the 94.1-metre Tower One along the Queensberry Street edge to the 199.44-metre Tower Three closer to the established CBD-scale buildings to the south.

<img alt="SP Setia" data-entity-type="file" data-entity-uuid="e885a07a-592c-40fc-bf82-e6dbaf32da54" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.52.24%E2%80%AFAM.png?VersionId=7s_ErUkSKAdY1mAWp3GRZgMNCGtwhk5m" />

SP Setia plans to deliver the development across three stages.

Stage One would deliver the basement, podium and retail areas for the entire precinct alongside the first student tower. Tower Two would follow in Stage Two, before the 606-apartment Tower Three is delivered as the final stage.

If approved and delivered, the project would close out a redevelopment process that has been underway since the former brewery masterplan was approved in 2007, adding more than 2,600 student beds and apartments to a precinct already home to Swanston Central, the Barak Building, RMIT Design Hub and several large student accommodation developments.

&nbsp;

&nbsp;

Joel Robinson

SP Setia plans three-tower finale for Carlton’s former CUB precinct

Melbourne developer Lowe Living is seeking to add to its growing bayside apartment pipeline, filing plans for a boutique eight-residence development in tightly held Middle Park.

Lowe Living, which has built much of its development portfolio across Melbourne's affluent bayside and south-east suburbs, is behind the plans for the 730 sqm site at <a href="https://www.apartments.com.au/new-apartments/123-125-erskine-street-middle-park-vic-3206">123-125 Erskine Street</a>, just off Armstrong Street and within the Armstrong Street Neighbourhood Activity Centre.

The developer is seeking approval for a five-storey residential building above two basement levels, with just eight large-format apartments and 18 car spaces.

“This is a deliberately very different proposition for us,"&nbsp;Tim Lowe, Co-Founder of Lowe Living, said.

"Eight residences is exceptionally boutique, but that's precisely what this site calls for.

“There is a strong community in Middle Park and the surrounding suburbs who have spent decades building a life here. They no longer want the maintenance of a large period home, but they aren't prepared to compromise on space, quality or location. We think there is a real opportunity to capture that hyper local market. A site like this rarely comes to market.”

<img alt="Lowe " data-entity-type="file" data-entity-uuid="875fe572-0f14-4d90-9e11-55b28dd07731" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.42.49%E2%80%AFAM.png?VersionId=GDNQRv9BfpR9r1zkZ5UDyUM4ZvpIksut" />

The low-density proposal has been designed by Cera Stribley and is being progressed through the Victorian Government's Great Design Fast Track pathway, having already secured eligibility from the Minister for Planning.

The Office of the Victorian Government Architect supported its eligibility after finding the proposal demonstrated consistency with the program's seven design principles, while the project's financial feasibility has also been independently confirmed by Invest Victoria.

The project is targeting the downsizer market, with the planning documents describing the homes as larger-format residences and noting the two penthouses could otherwise have been configured as four separate apartments.

<img alt="Lowe 2" data-entity-type="file" data-entity-uuid="60ab0987-2da6-4175-adac-315dcf6053c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.15%E2%80%AFAM.png?VersionId=bOCPH0B2MFwlmaRW.TTCF9TzyifgVoQI" />

The site has dual frontage to Erskine Street and Canterbury Place and currently comprises a collection of commercial buildings used as offices, including a former heritage bakehouse, a former stable, a later gabled addition and a central courtyard.

It sits within the Commercial 1 Zone and the Armstrong Street Commercial Precinct heritage overlay, with the existing property classified as a contributory heritage place.

Heritage has subsequently played a significant role in Cera Stribley's design.

The front section of the former bakehouse facing Erskine Street will be retained, including its return walls, street-facing hipped roof and chimneys, while the Erskine Street façade and part of the western return wall of the former stable will also be incorporated into the new development.

Levels four and five will be set back five metres from the retained stable façade, while bricks removed through demolition are proposed to be salvaged and reused within the new building where possible.

<img alt="Lowe 3" data-entity-type="file" data-entity-uuid="e97927a9-a2de-4a0f-83b6-65451238abfa" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-21%20at%208.43.06%E2%80%AFAM.png?VersionId=VR44AChLrX9q1XPB9GvVQV.ALXXbe4gC" />

Rather than presenting as a single five-storey building to Erskine Street, Cera Stribley has broken the development into a series of distinct forms.

A three-storey infill element will sit between the retained bakehouse and stable façades, with the upper levels recessed behind the heritage fabric. Canterbury Place will similarly feature two three-storey podium forms, separated by a central pedestrian accessway, before the upper two levels step back from the street.

A pedestrian through-link will run through the centre of the project between Erskine Street and Canterbury Place, creating entrances from both sides of the site and introducing landscaping and communal areas through the ground plane.

Landscape architect Acre has designed planting across the ground level, private terraces and upper levels, including a feature canopy tree at level three and integrated planting and arbours across the level four terraces. Five existing Erskine Street trees are proposed to be retained.

Sustainability is also a significant component of the Great Design Fast Track application. The apartments are targeting an average eight-star NatHERS rating, with no residence below 6.5 stars, while the project has achieved a 75 per cent BESS score. Seven of the eight apartments are designed for cross-ventilation, with the remaining residence using mechanically assisted natural ventilation.

The plans also incorporate an 8kWp rooftop solar system, a 5,000-litre rainwater tank and infrastructure allowing future electric vehicle charging for every residence.

Lowe has a strong portfolio across Melbourne's blue-chip suburbs. They recently launched <a href="https://www.apartments.com.au/new-apartments/jardin-house-by-lowe-living-camberwell-335-camberwell-road-camberwell-vic-3124">Jardin House by Lowe Living</a> in Camberwell, their first development in the Stonnington LGA.

Lowe Living unveils Middle Park apartment development

Article summary

<ul data-end="888" data-start="289">
	<li data-end="442" data-section-id="8tsh6o" data-start="289">DVB Projects is preparing to launch its second Gold Coast apartment development, with demolition now underway at 137 Old Burleigh Road, Broadbeach.</li>
	<li data-end="573" data-section-id="1nyxl3e" data-start="443">The 34-level tower will comprise just 49 ultra-luxury residences, including half-floor, full-floor and penthouse apartments.</li>
	<li data-end="717" data-section-id="oiyimj" data-start="574">The launch follows strong demand at DVB's nearby Sea Glass project, which is more than 50 per cent sold and currently under construction.</li>
	<li data-end="888" data-section-id="epk9o9" data-start="718">The development adds to the transformation of Old Burleigh Road, with premium beachfront apartment projects continuing to reshape the tightly held Broadbeach strip.</li>
</ul>

<a href="https://www.apartments.com.au/developers/dvb-projects">DVB Projects</a> is preparing to launch its second Gold Coast apartment development, with demolition now underway on the Broadbeach site as the Sydney developer moves closer to bringing the ultra-luxury project to market.

The 34-level tower at <a href="https://www.apartments.com.au/new-apartments/137-old-burleigh-road-broadbeach-qld-4218">137 Old Burleigh Road</a> will comprise just 49 residences, ranging from half-floor apartments through to full-floor homes and a penthouse. The launch follows the strong sales performance of DVB's nearby Sea Glass development. More than half of the apartments at Sea Glass, on the other side of Broadbeach, have been snapped up, well ahead of its late 2027 completion

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="2944b4be-c84e-4b54-8dc1-c712e76704c0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E02_Exterior_Street%20Level%20Entrance.jpg?VersionId=YoNig7pRdrE3HCue7sUj78LzJteeQf3H" />

The start of demolition at 137 Old Burleigh Road signals DVB Projects’ underlying confidence in the Gold Coast’s luxury beachside apartment sector.

“We see the Gold Coast as one of the most compelling lifestyle markets in Australia, particularly at the premium end where demand continues to deepen,” said Dean Brown, Managing Director of DVB.&nbsp;

“This project has been carefully designed to respond to that demand - delivering large-format residences with a level of quality, privacy and amenity that is still relatively rare in the apartment market on the beachside."

Brown says the site itself is "exceptional."

"Old Burleigh Road is one of the most tightly held beachfront strips, and opportunities to deliver a project of this scale and calibre in this location are extremely limited.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="398f377a-c037-455e-9250-0c5e0d84c35b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/I12_FF%20Balcony.jpg?VersionId=NwOiRWGMubR1c8wthuEfggklcja7al9." />

The project will comprise 40 half-floor residences of approximately 260 sqm, alongside eight full-floor residences spanning around 524 sqm.

A single penthouse will crown the building, featuring a private pool, barbecue area, indoor gym and dedicated entertaining spaces.

Residents will have access to a resort-style suite of amenities, including a 20-metre pool with daybeds, a gymnasium, hot and cold plunge pools, a sauna, and private residents’ lounge and dining facilities.

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="d1642bb0-9a66-4427-a022-dfc0988c6287" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/A02_Pool%20to%20View.jpg?VersionId=c0IXPyn_Gp_Kn3XCwzMrqIVkAdCEwVXP" />

Sales agent Todd Matheson, of <a href="https://www.apartments.com.au/project-marketer/pezet-matheson">Pezet Matheson</a>, which is marketing both 137 Old Burleigh Road and Sea Glass, said 137 Old Burleigh Road would address a clear gap in the market for genuine luxury products.

“There are very few opportunities on the Gold Coast where buyers can secure a residence of this size and quality in a new building,” Matheson said.

“What we’re seeing is a growing cohort of downsizers and interstate buyers who still want space - they’re not willing to compromise on living area, entertaining or finishes.

“This project has been designed with that buyer in mind. It offers the scale of a home, combined with the convenience and security of apartment living, in one of the coast’s most desirable positions.”

<img alt="DVB Projects to commence demolition on $320m Broadbeach luxury tower" data-entity-type="file" data-entity-uuid="59aae0ca-5639-4320-8aca-d0bf60f48e43" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/E01_Exterior%20Hero.jpg?VersionId=DS8Zfy2WtgUEtdfe0TEUuf1W1GfcZq8S" />

Located on a 1,156 sqm site one block from the beachfront, the development will replace an ageing walk-up building and is expected to contribute to the ongoing transformation of the Old Burleigh Road strip into one of the Gold Coast’s most prestigious residential corridors.

With the development moving into the delivery phase, 137 Old Burleigh Road is slated to hit the market later this year.

[smartcode_project_cta:default project_id=145141]

DVB Projects to launch second Broadbeach apartment tower as demolition commences

<a data-end="327" data-is-only-node="" data-start="250" href="https://www.apartments.com.au/developers/norus-projects" rel="noopener" target="_new">Norus Developments</a> has lodged plans for a new apartment development in Clayton that would add further momentum to the suburb's emerging Green Street corridor.

Plans have been lodged for the consolidated site at <a href="https://www.apartments.com.au/new-apartments/1359-1365-centre-road-clayton-vic-3168">1359-1365 Centre Road</a>, where Norus is seeking approval for 218 apartments across a 12-storey apartment building designed by <a href="https://www.apartments.com.au/architects/life-architecture-and-urban-design">Life Architecture</a>.

The proposal sits within the Clayton Major Activity Centre at the threshold of the planned Green Street corridor, a landscaped pedestrian connection intended to improve links through the precinct towards Clayton Railway Station.

The development would replace the site's existing collection of low-scale residential and commercial buildings with a single consolidated building, introducing significantly greater housing density to this part of Centre Road.

A retail tenancy is proposed at ground level to activate the Centre Road frontage, accompanied by transparent street interfaces and landscaping intended to create a more pedestrian-focused edge to the development.

<img alt="First look: Norus Developments plans landscape-led apartment project for Clayton’s emerging Green Street" data-entity-type="file" data-entity-uuid="0a5a763a-d9e9-4253-af2f-88008de27ebf" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Clayton%20a.png?VersionId=S2WJJbat1XVkZwB9SnYtygirXgWHiklX" />

The building has been designed with stepped massing and upper-level setbacks to manage its transition towards surrounding residential properties. The planning report describes the approach as one that integrates the building into the landscape rather than treating landscaping as a secondary element.

"A strong landscape and public realm strategy underpins the proposal," Urbis states in the planning report.

"Public benefits include an affordable housing contribution, a new pocket park, generous landscaped setbacks, deep soil planting and integrated Water Sensitive Urban Design."

The report adds that these elements are intended to create "a permeable, pedestrian-focused ground plane that enhances walkability, supports urban cooling and reinforces the emerging Green Street character."

Biophilic and passive design principles extend through the residential levels, with planting, daylight, natural ventilation and views towards landscaped areas forming part of the amenity strategy.

Parking would be concentrated away from the public realm, with 145 car spaces proposed from the rear laneway rather than dominating the Centre Road frontage.

The proposal follows an extensive pre-application process with the City of Monash. Three formal meetings were held between the project team and Council from December 2025 to March 2026, with the scheme evolving through several concept iterations before the current design was lodged.

The project arrives as Clayton prepares for substantial change around its established activity centre and the wider Suburban Rail Loop precinct. Its position on Centre Road places the development within an existing concentration of shops, services and public transport, while the Green Street connection is intended to strengthen pedestrian access towards Clayton Railway Station.

First look: Norus plans landscape-led apartment project for Clayton’s emerging Green Street

<a href="https://www.apartments.com.au/developers/gardner-vaughan-group">Gardner Vaughan Group</a> has officially commenced construction on Bronze on Chevron, celebrating the sod turning of its first-ever Gold Coast development and marking a significant milestone in the company's continued expansion across South East Queensland.&nbsp;

Following the successful delivery of premium residential developments throughout Brisbane and the Sunshine Coast, <a href="https://www.apartments.com.au/new-apartments/bronze-on-chevron-8-mawarra-street-chevron-island-qld-4217">Bronze on Chevron</a> represents Gardner Vaughan Group's entry into the Gold Coast market. Bronze will deliver 119 one, two, three and four-bedroom apartments above two ground-level retail tenancies.

[smartcode_project:default project_id=107520 project_image_fid=367193]

The recent sod turning ceremony was attended by Deputy Mayor Mark Hammel, President of the Surfers Paradise Surf Life Saving Club, Cassandra Sedgman, project consultants, purchasers, project partners and invited guests to celebrate the commencement of construction.&nbsp;

Gardner Vaughan Group Chief Executive Officer Simon Betteridge said Bronze on Chevron represented an exciting new chapter for the business.&nbsp;

"We've spent almost four decades building homes that respond to the way people want to live, and we're excited to bring that experience to <a href="https://www.apartments.com.au/developments/chevron-island-qld-4217">Chevron Island</a>," Betteridge said.

"Bronze on Chevron is particularly significant because it marks Gardner Vaughan Group's first development on the Gold Coast following many successful projects across Brisbane and the Sunshine Coast."

[smartcode_project:default project_id=107520 project_image_fid=367183]

Betteridge said the ground breaking is a proud moment for the&nbsp;team and their purchasers, who can now see their future homes beginning to take shape.&nbsp;

"As both developer and builder, we're able to oversee every aspect of the project from design through to construction, ensuring the quality and attention to detail Gardner Vaughan Group has become renowned for."&nbsp;

Designed by acclaimed architectural practice <a href="https://www.apartments.com.au/architects/cottee-parker-architects">Cottee Parker</a>, Bronze on Chevron has been thoughtfully designed to complement Chevron Island's evolving streetscape while embracing its relaxed coastal lifestyle.

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029.&nbsp;

[smartcode_project_cta:default project_id=107520]

The development will offer generous residences with refined interiors, premium finishes and resort-style amenities, with completion anticipated in early 2029

Gardner Vaughan Group breaks ground on first Gold Coast development, Bronze on Chevron

National Australia Bank (NAB) has brought forward the timing of the first RBA cash rate cut by three months.

NAB is now expecting a cut in February, in line with ANZ and Westpac, having initially thought a cut wouldn't come until May.

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB changed its call following the August monthly inflation figures that were released at the end of September, showing it had dropped to 2.7 per cent.

"The risk has been skewed to a first cut earlier in 2025, and today’s change acknowledges the balance of risks has likely shifted sufficiently for the RBA to feel comfortable cutting a little sooner than we earlier expected," NAB noted in its latest update.

They added that the cadence of the cuts may be faster than its central profile.

"Domestic inflation pressures are cooling, but only gradually, and we continue to expect the conditions for a cut will not be in place this year.

NAB believes the easing cycle will end at 3.1 per cent by early 2026, which is five cuts from the current 4.35 per cent cash rate.&nbsp;

CBA also thinks 3.1 per cent will mark the end of the cutting cycle, while Westpac is forecasting 3.35 per cent, and ANZ is the most pessimistic at 3.6 per cent, which would be just three interest rate cuts.

<h2>What would a rate cut in February look like for borrowers?</h2>

According to&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2vK2ujS77CHs9VRvSSXzLC" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.IVvjJ-2BPT0A8C3VxtqKc6e3bj5hBuw27WFEYqovsYs7kPsgFulYrdOzeP8gI7CybJOya3_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20hPXdLlPP9yD7DvFFDBM5yrTqxvcCiMfAsW1onD-2FcriL628eYdhNQE7bwzYrxcOYnmaYfRhGl-2FEHQ6eK2uQcLxs6Cbu6Dx0bYvpi5A6enmxMWU5TkcRYrP6Z8GbXZYtc5qSoKu6eWFBQR9K7fsjXwHMmby3D3X6Yx-2BxcDcdRruTG" target="_blank">Canstar</a>, if there is a cut in February, a borrower with a $600,000 loan today and 25 years remaining would see their monthly repayments drop by $92.&nbsp;

<table border="1" cellpadding="0" cellspacing="0">
	<tbody>
		<tr>
			<td colspan="3">
			Impact of 0.25% pt cut in February 2025
			</td>
		</tr>
		<tr>
			<td>
			Current loan size
			</td>
			<td>
			Drop in monthly repayment
			</td>
			<td>
			New monthly repayment
			</td>
		</tr>
		<tr>
			<td>
			$600,000
			</td>
			<td>
			-$92
			</td>
			<td>
			$3,907
			</td>
		</tr>
		<tr>
			<td>
			$750,000
			</td>
			<td>
			-$114
			</td>
			<td>
			$4,884
			</td>
		</tr>
		<tr>
			<td>
			$1M
			</td>
			<td>
			-$153
			</td>
			<td>
			$6,512
			</td>
		</tr>
		<tr>
			<td colspan="3">
			Source:&nbsp;<a data-saferedirecturl="https://www.google.com/url?q=https://link.mediaoutreach.meltwater.com/ls/click?upn%3Du001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL&amp;source=gmail&amp;ust=1727774368149000&amp;usg=AOvVaw2qVnp6oqATgqDUi2Frm22q" href="https://link.mediaoutreach.meltwater.com/ls/click?upn=u001.xWMOP9hChsvn-2BC9O-2FebBihXIZ4cEzbiuENdxm-2Bx3-2FYEEgYMhZlKWNj5Zzy1YZ56RuASD_RgrM7qq-2BfK-2FtAHeRBLv5Qrb-2Bii5fzjLeKcP4w-2FkNgJPXygpiRhVUan3WV3QEggcf617UC8Z60RjQJZAqx7PiO7FtVJQSn0D46Zc3iTVP0kAhTTzG51cPpa5hrqz1OkSA-2BiXAxUajQ686MTtiseWBIdMdknd83aB7cOVgXlVTeHCGf3-2BcMHwfvI8TYlkUovqEhn4dj0KXf2eJGpb9-2BBv20v2akwr6-2BqLyRrlEgkJ4J-2BCCyY0x189xEHZA4Ylf8c7ChBqNIkhmftZzoFuZKFn43pw3oJVg2o1gumrpdA-2B7MB-2FBtmL2rFCI-2FXORATQHySCLVOMg7Vywv-2BqnnQUAtDz6XkvpwxdHFXh70VwKazzhJsICilEYOvP4ju0sIfi5g6TL" target="_blank">www.canstar.com.au</a>. Starting rate is the RBA existing average owner-occupier variable rate of 6.36%. Assumes banks pass the cash rate cut on in full the month after the meeting.
			</td>
		</tr>
	</tbody>
</table>

Canstar Data Insights Director, Sally Tindall, says if core inflation continues to track in the right direction, or unemployment starts to accelerate significantly, we could well see a cash rate cut as early as February of next year.

“All four big banks now believe the RBA will be ready to cut the cash rate in just over four months’ time, if not before, in the case of CBA.

“However, the outlook for both inflation and unemployment is still highly uncertain. A couple of wobbly sets of inflation data could see the RBA holding for longer, particularly if unemployment remains relatively steady."

&nbsp;

Commonwealth Bank, the nation's largest lender, still thinks the first cut will come in December.

NAB bring forward first RBA cut to February 2025

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NAB are now forecasting the RBA will soon adopt unconventional monetary policy, given the rapid coronavirus-driven deterioration in both the local and global economies.
They expect the RBA to announce a second cut in as many months when they meet next month, bringing the cash rate down to 0.25 per cent.
The RBA have already suggested they are unwilling to take the cash rate down to 0.
NAB predict "yield curve control" to commence by May or June.
"Yield curve control is a form of quantitative easing where the RBA announces target levels for government bond yields and buys bonds if yields fail to settle at those targets", NAB advised, adding the plans could be announced as early as April.
"The timing is very fluid, depending on the state of the [coronavirus] outbreak, the economy and financial markets.
"Increased containment efforts in Australia and the rest of the world would likely speed the path to unconventional policy. 
NAB suggest it is important monetary and fiscal policy are now working in tandem.
"The Commonwealth government should announce spending and tax measures later this week, aiming to minimise job losses by shoring up the cash flow of affected businesses."
The fiscal stimulus could total $10bn, or around 0.5% of GDP. 
"More significant measures could be considered in the May budget and a greater reliance on fiscal policy is warranted given the nature of the shock and with conventional monetary policy near exhaustion. 
"The economy will recover as the outbreak comes under control, hopefully by the end of this year, if not sooner, but until then easier policy has a critical role in providing support until the crisis abates."
 
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jrobinson-rf4aSBido9

NAB expect the RBA to soon adopt unconventional monetary policy

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EXPERT OBSERVER
This week the Reserve Bank of Australia did something everyone expected and the US Federal Reserve did something almost nobody expected. Both are revealing.
At its monthly meeting Australia’s central bank cut official interest rates by 25 basis points to a record low of 0.5%.
The Fed cut rates by 50 basis points – not at a regular meeting but “off cycle” – in response to the COVID-19 crisis, which looks likely to become a global pandemic.
The Reserve Bank of Australia’s announcement of its <a href="https://www.rba.gov.au/media-releases/2020/-20-06" target="_blank">decision</a> made it seem COVID-19 was the main, if not only, reason it was cutting rates.
In reality, the bank was always going to cut rates sooner rather than later. Australia’s economic growth remains sluggish on a per capita basis, wage growth is still hovering about 2%, unemployment is 5.3% and inflation has been below the 2-3% target band for Philip Lowe’s entire time as governor (since September 2016).
The US economy, by contrast, is doing better on all these measures. Unemployment is at its lowest rate in several decades. Wage growth is <a href="https://tradingeconomics.com/united-states/wage-growth">above</a> 3.6% on an annual basis.
That makes the US rate cut far more revealing about the Fed’s view on the economic effects of COVID-19.
The Fed’s Open Market Committee is worried. US stock markets responded to the announcement by <a href="https://www.nytimes.com/2020/03/04/business/stock-markets-today">dropping about 3%</a>, before recovering the next day.
One tool in the box
There is a narrative in Australian business circles, among certain commentators – and voiced by former treasurer Peter Costello – that the Reserve Bank’s interest rate cuts no longer do anything to spur investment and growth because rates are already so low.
Moreover, the argument goes, by cutting rates the central bank sends a negative message about the state of the Australian economy.
The hard truth is the economy is in bad shape.
Interest-rate cuts alone won’t solve the problem. But it is the tool the Reserve Bank has at its disposal. There is also good reason, as I <a href="https://theconversation.com/vital-signs-does-monetary-policy-work-any-more-126579">wrote late last year</a>, to believe the normal transmission mechanisms of monetary policy are still working.
As almost every mainstream economist has said, prior to the COVID-19 outbreak the Australian economy needed significant fiscal stimulus rather than the balanced-budget fetishism of the current Coalition government (and, to be fair, also the current Labor opposition).
We are now going to see some targeted stimulus because of COVID-19, but that won’t address the Australian economy’s pre-existing problems.
Sending a message
Curiously enough, the critique of the Reserve Bank of Australia just mentioned applies quite well to the US Federal Reserve’s decision to cut rates dramatically – and do so off-cycle.
The Fed cut its rate range from 1.5%-1.75% to 1.0%-1.25%. Doing so used up a lot of its remaining monetary policy ammunition.
And the virus crisis is not just a demand-side problem where consumers aren’t spending. It’s also a supply-side problem where businesses are unable to produce what consumers might be willing to buy. No rate cut can repair global supply chains disrupted by mass factory closures in China.
What the Fed definitely did do is send a message that the virus crisis is going to be a really big deal. That helps create its own vicious cycle of beliefs on the demand side as consumers respond to the rate cut by increasing precautionary savings and cutting back on spending.
So the Fed used some of its limited ammunition in a way unlikely to be very effective, and has freaked out markets and consumers. Oops.
A time to borrow and spend
Coming back to Australia, it will be important to unpack both the Reserve Bank’s monetary response and the federal government’s fiscal response. How much is a response to COVID-19 and how much to the underlying weakness of the Australian economy?
The real fear is that too little will be done, especially with fiscal policy, to address that underlying economic weakness.
There is some hope, now the prospect of a budget surplus has essentially evaporated, the Coalition government will be free to do what it should have been doing all along – making long-term investments in the Australian economy.
Let’s not forget the government can borrow for 10 years at 1% in nominal terms – a negative interest rate when adjusted for inflation. Debt markets will essentially pay us to borrow from them. That is a rare opportunity to make smart investments that will pay huge dividends in years to come.<img src="https://counter.theconversation.com/content/132970/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/richard-holden-118107">Richard Holden</a>, Professor of Economics, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>
This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/vital-signs-australian-and-us-rate-cuts-underline-seriousness-of-the-coronavirus-crisis-132970">original article</a>.
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rh-YsoTT2xMuQ

Australian and US rate cuts underline seriousness of the coronavirus crisis: Richard Holden

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Online home loans are offered by banks and lenders that do not have branch access or employ staff to meet with customers in person. 
More often than not, the trade-off is getting cheaper interest rates and paying lower ongoing fees. 
While most banks and lenders are governed by the Australian Prudential Regulation Authority (APRA), some online lenders are not governed by the APRA. 
Nonetheless, all online lenders must adhere to a set of guidelines by the Australian Securities and Investments Commission (ASIC) which means, though you won't have any in-person banking service, you will still have consumer protection rights which includes the right to make a complaint through the Australian Financial Complaints Authority (AFCA)
There are a growing number of online lenders in the Australian market, the main ones being <a href="https://www.clickloans.com.au/" target="_blank">Click Loans</a> (3.76 per cent comparison rate per annum), <a href="https://www.mebank.com.au/" target="_blank">ME Bank</a> (3.44 per cent), <a href="https://www.statecustodians.com.au/" target="_blank">State Custodians </a>(2.85 per cent)<a href="https://www.statecustodians.com.au/" target="_blank">,</a> <a href="https://www.ubank.com.au/home-loans" target="_blank">UBank</a> (2.84 per cent),<a href="https://tictoc.com.au/" target="_blank"> Tic:Toc</a> (2.8 per cent) <a href="https://australianmortgage.com/" target="_blank">Australian Mortage Marketplace (AMM)</a>, and <a href="https://www.loans.com.au/" target="_blank">loans.com.au</a> (2.8 per cent) to name a few. 
Like most home loans, online home loans require applicants to submit paperwork proving their eligibility for a loan. 
At <a href="https://www.mebank.com.au/home-loans/" target="_blank">ME Bank</a> for instance, the below are required:
1. Proof of Identity
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/9/5_IDENTITY.jpg" alt="">
 
Not being able to meet and greet you in person means that online lenders will need proof that who they're lending to is you. 
Applicants will need at least 100 points of ID upon application. 
ME Bank recommends, "A passport is a good start, plus a combination of your driver's licence, bank cards, Medicare card or birth certificate." 
2. Paperwork 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/9/business-office-entrepreneur-professional.jpg" alt="" style="caret-color: #000000; color: #000000;">
Not everything online is more convenient, and the paperwork required for an online home loan is a prime example. 
ME Bank required its applicants to have: 
<ul>
<li>At least three consecutive payslips;</li>
<li>A copy of your latest PAYG Summary or Notice of Assessment from the ATO; </li>
<li>Any bank statements showing other income, like Centrelink payments;</li>
<li>Your accountant's details, if you're self-employed; and </li>
<li>Evidence you've saved for a deposit. </li>
</ul>
In addition, paperwork regarding your financial position is needed because being eligible for a home loan is not solely based on how much one earns. 
This set of paperwork is necessary in assuring lenders that you can afford to repay your loan. Therefore, ME Bank also requires:
<ul>
<li>Any other loans or debts you have, like car finance or personal loans; </li>
<li>Assets in your name; and</li>
<li>An estimate of your living expenses.</li>
</ul>
Most lenders will also require you to have a clean credit report prior to approving your finance, so a copy of your cred report will also be important. 
Last but not least, the final piece of paperwork is a statement from you about the security for your loan, which in laymen terms means the home you are applying a loan for. 
You will be required to supply details in writing of the property, and include the signed contract of sale.
If you're building, you'll need a council permit and your fixed-price builders contract. 
Like most of the prior procedures, this is to assure lenders of where the money is going, and whether it is a secure investment. 
3. A Solicitor or Conveyancer
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/9/5_LAWYERS.jpg" alt="">
Last but not least, towards the end of the application, you will be asked to provide details of your solicitor or conveyancer. 
ME Bank explains, "Having your legal professional lined up before you're ready to apply for a loan will speed up the paperwork."
ME Bank is an online bank founded in 1994, and is owned by a group of approximately 30 Industry Super Funds. 
Around 5,000 of Australia's 11,000 mortgage brokers are accredited with ME Bank, so it is crucial that you ask your mortgage broker if they offer ME's home loans. 
Online home loans also have a selection to choose from, so it is recommended that aspiring borrowers shop around to see which is most suitable. 
State Custodians for instance offer the below:
<ul>
<li>Low Rate Home Loan; </li>
<li>Investment Home Loan;</li>
<li>Fixed Rate Home Loan; </li>
<li>Interest Only Home Loan; and</li>
<li>Low Rate Line of Credit </li>
</ul>
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j.ballantyne1990-6AQqhLzZaK

What you need to know when getting an online home loan: ME Bank

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Australia’s fifth largest bank, ING, has cut fixed rates to as low as 2.49 per cent on its 3-year fixed rate.
This is currently the lowest fixed rate on the RateCity.com.au data base.
ING has shaved all of its 1- to 5-year owner-occupier rates by up to 0.35 per cent and investor rates by up to 0.40 per cent.
<img src="https://www.urban.com.au/images/2020/3/5/Ratecity%20ING%201.JPG" alt="">
Since the RBA announced the 0.25 per cent cash rate cut on Tuesday, a total of four lenders have lowered their fixed rates.
BankVic is hot on the heels of ING, today cutting its fixed rates to now offer 2- and 3-year year loans as low as 2.50 per cent.
RateCity.com.au research director Sally Tindall said other lenders were likely to chase after ING in a bid to hold market share.
“The fixed rate war continues with the nation’s fifth largest lender now playing hard-ball in the fixed rate space,” she said.
“With ANZ, and now ING, offering market-leading rates, we expect other banks will start sharpening their prices in a bid to remain competitive.
“Fixed rates are a great tool to get new business in the door, particularly in this environment of record low rates. But with one more cash rate cut still likely, we probably haven’t seen the bottom of fixed or variable rates just yet,” she said.
<img src="https://www.urban.com.au/images/2020/3/5/Ratecity%20ING%202.JPG" alt="">
Almost 50 lenders have announced variable rate cuts, following Tuesday’s RBA decision.
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ING has slashed fixed rates to a new market low

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As the effects of the coronavirus continue to threaten the economy, the US Federal reserve has lowered interest rates to limit further impact. 
The Federal Reserve has lowered its key Fed Funds rate by 0.5 percent, the first unscheduled emergency rate cut since 2008, taking it to a range of 1-1.25 per cent. 
An openness to further easing has been signalled as G7 finance ministers and central bankers commit to use all appropriate policy tools to support growth in the face of the COVID-19 threat. 
The Fed is likely to cut rates by at least another 0.5 percent in the months ahead. And we continue to see the the likelihood of an RBA cut again next month <a href="/expert-insights/finance/rba-cut-interest-rates-at-march-meeting-to-record-low-0-5-per-cent">following the March cut</a>.
RBA Governor Philip Lowe cited the coronavirus nine times <a href="/expert-insights/finance/rate-cut-given-coronavirus-rba-governor-philip-lowes-march-2020-meeting-statement">in his brief meeting announcement</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/4/Global%20interest%20rates.jpg" alt=""> 
AMP Capital chief economist Shane Oliver says monetary and fiscal policy easing is necessary to help minimise some of the worst economic fall out from the coronavirus outbreak (including liquidity and insolvency problems) and speed the eventual recovery.
"However, we still need to see signs that the coronavirus outbreak is coming under control – with eg a peaking in the daily number of new cases beyond China or say antivirals being successfully deployed.
"At present the daily number of new cases are still trending up in numerous countries outside China so it’s premature to say with much confidence that we have seen the low point in share markets.
NAB now expect the Fed to cut rates by 25 basis points at its March and April meetings.
"We are tentatively pencilling in 25bps at each of these meetings, which would take the fed funds target range to 0.5 to 0.75%," NAB advised.
"For now, we are assuming that the Fed will keep the fed funds rate at this level through our projection period (to 2021) but the risks around this are skewed towards it being more aggressive in the near term (but with a risk of partial reversal of the rate cuts further out assuming growth recovers in the second half of this year)."
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US Fed cuts funds rate by 0.5 per cent to help combat coronavirus economic threat

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EXPERT OBSERVER
Never has a virus featured so prominently in a Reserve Bank statement.
<a href="https://images.theconversation.com/files/318243/original/file-20200303-18287-3jgff.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip" target="_blank"><img src="https://images.theconversation.com/files/318243/original/file-20200303-18287-3jgff.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=237&amp;fit=clip" alt=""></a>
Source: <a class="source" href="https://www.rba.gov.au/media-releases/2020/mr-20-06" target="_blank">Reserve Bank of Australia</a>
The word “coronavirus” is mentioned <a href="https://www.rba.gov.au/media-releases/2020/mr-20-06" target="_blank">nine times</a> in the governor’s seven-paragraph statement.
His board cut the cash rate from an all-time low of 0.75 per cent to a new all-time low of 0.50 per cent “to support the economy as it responds to the global coronavirus outbreak”.
Up until the coronavirus, it had looked as if “the slowdown in the global economy that started in 2018 was coming to an end”.
The coronavirus has “clouded” that outlook.
It is “too early to tell how persistent the effects of the coronavirus will be and at what point the global economy will return to an improving path”.
Financial markets have been volatile “as market participants assess the risks associated with the coronavirus”.
In most economies, including the United States, there is an expectation of further rate cuts.
The coronavirus is having a “significant effect” on Australia’s real economy, particularly in the education and travel industries.
The uncertainty is “also likely to affect domestic spending”.
GDP growth in the March quarter (but not the December quarter whose figures will be released on Wednesday) is likely to be “noticeably weaker than earlier expected”.
Once the coronavirus is contained, the Australian economy is expected to return to an improving trend.
But given the evolving situation, it is difficult to predict how large and long-lasting the effect will be.
Summing up, the bank says the global outbreak is “expected to delay progress in Australia towards full employment and the inflation target”.
It decided to cut rates to provide “additional support to employment and economic activity”. Importantly, it will continue to monitor developments closely with a view to doing more.
The final sentence, the one which usually carries the key message, says: “the board is prepared to ease monetary policy further to support the Australian economy”.
<h2>Would it have cut without the coronavirus?</h2>
It probably wouldn’t have cut without the coronavirus. It most likely would have had to cut at some point because the economy is weak. We will get an update about how things were in the three months to December on Wednesday, but the news up to the end of September was awful.
Household spending, which accounts for more than half of gross domestic product, barely budged. Over the year to September it grew just 1.2 per cent in real terms, the least since the global financial crisis. Australia’s population grew 1.6 per cent in that time, meaning the volume of goods and services bought per person went backwards.
Early figures on private new capital expenditure which will be incorporated into the national accounts released on Wednesday show business investment went backwards over the December quarter (down 2.8 per cent) and over the entire year (down 5.8 per cent).
The May budget and the December budget update forecast a jump in business investment, which it is hard to see happening.
Governor Philip Lowe has been reluctant to cut in part because he is running out of traditional ammunition.
He has said that for practical purposes the next step – 0.25 per cent – is zero, a point beyond which he would <a href="https://www.rba.gov.au/speeches/2019/sp-gov-2019-11-26" target="_blank">need to use unconventional measures</a> (which have been used so much overseas they are no longer that unconventional) to stimulate the economy further.
The most likely one is buying government and mortgage bonds from investors in order to <a href="https://theconversation.com/now-we-know-the-reserve-bank-has-spelled-out-what-it-will-do-when-rates-approach-zero-127697" target="_blank">force money into their hands</a>, making the cash rate graph the bank has been updating for 30 years now no longer relevant as an indicator of what it is doing to stimulate the economy.
<hr>
Reserve Bank cash rate
<a href="https://images.theconversation.com/files/318234/original/file-20200303-18270-1bjl5b0.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=1000&amp;fit=clip"><img src="https://images.theconversation.com/files/318234/original/file-20200303-18270-1bjl5b0.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt=""></a>
<hr>
He has decided to cut because he is contractually obligated to do what he can to contribute to “<a href="https://www.rba.gov.au/about-rba/our-role" target="_blank">the economic prosperity and welfare of the people of Australia</a>”, which is at risk.
<h2>What good will the cut do?</h2>
Westpac and the Commonwealth Bank announced they were passing the cut on to borrowers straight away after an appeal by Prime Minister Scott Morrison to their better natures.
The government would absolutely expect the four big banks to come to the table and to do their bit in supporting Australians as we go through the impact of the coronavirus. I don’t see it any different to what Qantas did when we called out to Qantas and we said, we need your help, we need to get some people out of China.
Before today’s decisions the average standard variable mortgage rate was 4.7 per cent The average basic variable mortgage rate was 3.05 per cent. Today’s cuts will take it to 2.8 per cent.
They will save many mortgage holders an extra A$30 per month on repayments on top of the $150 saved since June. That will allow them to spend more or to borrow more by extending their mortgages, further increasing the financial attractiveness of investments such as solar panels or home insulation, and perhaps further supporting home prices which have turned up since the bank began cutting.
Where mortgage holders direct the proceeds of the cuts to Australian businesses, it’ll help keep them afloat or give them the confidence to borrow for expansion at record low interest rates.
Although it is often said that interest rate cuts have less effect when interest rates get low, there is no particular reason to believe this is the case. There is reason to believe interest rate cuts have little effect when consumers and businesses have other reasons for not borrowing or spending much, which might well be the case at the moment.
<h2>What will the government do?</h2>
The government is drawing up a stimulus plan. Just don’t call it that.
Morrison says it will:
<blockquote>
be a targeted plan, it will be a measured plan, it will be a scalable plan, we will ensure that we do not make the same mistakes of previous stimulus measures that have been put in place.
</blockquote>
That probably means he won’t be delivering cheques to households as Labor did during the global financial crisis. The Coalition tried something similar, delivering out-sized tax refund cheques after the May budget, and it didn’t work that well.
He’ll almost certainly announce new investment allowances for businesses; if necessary, ones that effectively pay them to borrow.
And he and his ministers will be surveying the economy sector by sector.
He has spoken personally with the bosses of Coles and Woolworths seeking assurances they won’t run low on supplies. He says if necessary they can talk to each other, something normally not allowed by competition rules.
They have already talked to Kimberly Clark, which manufactures toilet paper. It has set up a line of production in South Australia to ensure shops don’t run out.<img src="https://counter.theconversation.com/content/132871/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;">
<a href="https://theconversation.com/profiles/peter-martin-682709" target="_blank">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292" target="_blank">Crawford School of Public Policy, Australian National University</a>
This article is republished from <a href="http://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/one-word-repeated-9-times-explains-why-the-reserve-bank-cut-its-coronavirus-132871" target="_blank">original article</a>.
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One word repeated nine times explains why the Reserve Bank cut: it's ‘coronavirus’

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All 26 home loan lenders who cut their interest rates following the RBA's announcement yesterday have cut in full.
It was the <a href="/expert-insights/finance/rba-cut-interest-rates-at-march-meeting-to-record-low-0-5-per-cent">first time since October</a> the RBA cut the official cash rate, with RBA Governor Philip Lowe citing the <a href="/expert-insights/finance/rate-cut-given-coronavirus-rba-governor-philip-lowes-march-2020-meeting-statement">economic effects of the coronavirus as a main driver</a>.
The cash rate now sits at a historic low 0.5 per cent.
Westpac were the first to cut, minutes after the RBA's decision. 
Commonwealth Bank followed, then NAB, and ANZ at the close of the day. 
All big four banks now offers their lowest variable rate under three per cent.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/3/4/Big%20Four%20RBA%20March%20cut.jpg" target="_blank">click here</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/4/Big%20Four%20RBA%20March%20cut.jpg" alt="">
Source: RateCity.
RateCity calculate the March cut will save the average mortgage holder $56 per month or $675 a year.
This is based on an owner occupier paying principal and interest on a $400,000, 30-year mortgage.
To enlarge, <a href="https://www.propertyobserver.com.au/images/2020/3/4/RBA%20loan%20savers.jpg" target="_blank">click here</a>.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2020/3/4/RBA%20loan%20savers.jpg" alt=""> 
Note: the above calculations are based on a person with a $400K, 30-year loan on RateCity’s average variable rate of 3.73 per cent.
RateCity.com.au's research director Sally Tindall says the majority of variable rate homeowners are set to save over $50 a month as a result of the cut to the cash rate. 
“This is money some families can put towards their bills but Australians with a bit of cash to spare may want to spend this cut in their local community.
“Any cut to the cash rate is always a double-edge sword as savers brace for another round of deposit rate cuts.
“While plenty of savers are facing the prospect of earning next to no interest on the back of this rate cut, it is still worth shopping around for a decent rate.
“When the dust settles, we expect the highest savings rate to sit at 2 per cent, which is at least a fraction higher than the current inflation rate,” she said.
<a href="/expert-insights/finance/athena-first-to-cut-interest-rates-after-march-rba-cut">Athena</a> was the national first lender to announce they were passing on the cuts to customers after the RBA's announcement, followed by the big-four banks <a href="/expert-insights/finance/westpac-first-of-the-big-four-to-cut-rates-in-full-after-rba-cut">Westpac</a>, <a href="/expert-insights/finance/commonwealth-bank-second-of-big-four-to-cut-rates-in-full-after-rba-cut">CBA</a>, <a href="/expert-insights/finance/nab-third-of-the-big-four-banks-to-announce-interest-rate-cuts">NAB</a>, and then <a href="/expert-insights/finance/anz-the-last-of-the-big-four-banks-to-pass-on-the-full-rate-cut">ANZ</a>.
ING, the nation's fifth biggest lender, today announced that it will make a 0.25% per annum cut for all new and existing customers with an ING variable rate home loan. The change will come into effect on 18 March 2020.
Freedom Lend, Homestar, Reduce Home Loans, RACQ Bank, 86 400, Auswide Bank, Defence Bank, The Mutual, St George, Bank SA, Bank of Melbourne, RAMS, Bank West Macquarie, Suncorp, Newcastle Permanent, Loans.com.au, First Mac, UBank, and ME Bank have all passed on the full rate cut. 
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Who cut interest rates following the RBA's March cut?

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EXPERT OBSERVER
As Westpac predicted yesterday, the Reserve Bank Board decided to lower the cash rate by 25 basis points to 0.50 per cent at its March meeting.
In discussing the reasons behind the decision, the Governor highlighted three themes that are all linked to the coronavirus.
Firstly, “In most economies, including the United States, there is an expectation of further monetary stimulus over coming months”.
Secondly, “the Australian Government has also indicated that it will assist areas of the economy most affected by the coronavirus”.
And finally “The uncertainty that it is creating is also likely to affect domestic spending. As a result, GDP growth in the March quarter is likely to be noticeably weaker than earlier expected”.
In fact, around two thirds of the statement  are devoted to the theme of the coronavirus, while the “usual themes” around unemployment; wages; and the housing market attract only limited attention with no real change from previous statements.
The final sentences of the statement are important: “It (the Board) will continue to monitor developments closely and to assess the implications of the coronavirus for the economy. The Board is prepared to ease monetary policy further to support the Australian economy”.
With the virus impacting an economy that was already weak it was absolutely necessary to provide more support although the Reserve Bank does not recognise that risk in the Governor’s Statement.
Conclusion 
It has been Westpac’s forecast that the RBA will act again in April for much the same reasons that we have seen today – helping to assist the Australian economy to deal with the shocks associated with the virus; falling into line with other central banks’ stimulatory policies, particularly to ensure that the Australian dollar remains competitive and working in conjunction with the Australian Government to deal with the issues.
It seems that the coronavirus has brought the Government and the Reserve Bank together to address the risks with complementary policies. That “partnership” is unlikely to end with this single move by the RBA.
This article was <a href="https://www.propertyobserver.com.au/https://westpaciq.westpac.com.au/Article/42362" target="_blank">first published on WestpacIQ</a>
<div>
BILL EVANS is the <a href="https://www.westpac.com.au/news/authors/bill-evans/" target="_blank">chief economist at Westpac</a>.
</div>
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bevans-rYk9SxEa4r

RBA will cut again in April for the same reason as March cut: Westpac's Bill Evans

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ANZ have completed a clean sweep of the big four banks who have now all passed on the official RBA rate cut.
ANZ group executive Australia retail &amp; commercial Mark Hand said the decision by the Reserve Bank to reduce the cash rate to historically low levels highlights the significant impact the outbreak of COVID-19 is already having on the global economy.
“While there were a range of factors considered in making this decision, ANZ is prepared to play its role in supporting both our customers and the broader economy through this period of uncertainty", Hand said.
“Customers wanting to increase the money in their pocket each month can contact us to decrease their monthly minimum payments. We also have competitive fixed-rates available for those looking to lock in these historically low rates."
Westpac went first, <a href="/expert-insights/finance/westpac-first-of-the-big-four-to-cut-rates-in-full-after-rba-cut">cutting within minutes</a> of the announcement, having been the last in to action in October.
CBA followed Westpac's cut about half an hour later, then NAB, and now ANZ.
CBA are the most likely to face scrutiny, not passing on the rates until March 24.
Westpac will pass the week earlier on March 17, while ANZ and NAB will be passing on the rate cut on March 13.
St George, Bank of Melbourne and Rams have also announced their intention to pass on the full cuts to customers.
Athena, Homestar, Reduce Home Loans, and Loans.com remain the only home lenders to pass on the cuts immediately.
 
 
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ANZ the last of the big four banks to pass on the full rate cut

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NAB has become the third of the 'big-four' banks to declare that they will pass on the interest rate cuts announced today by the RBA. 
Westpac were the <a href="/expert-insights/finance/westpac-first-of-the-big-four-to-cut-rates-in-full-after-rba-cut">first of the big four to pass after the RBA announcement</a>. 
For the fourth cut in a row, Athena Home Loans <a href="/expert-insights/finance/athena-first-to-cut-interest-rates-after-march-rba-cut">cut first, in full</a>. They've now passed on every RBA rate cut.
St George, Bank of Melbourne, and Rams have also announced their intention to pass on the cuts to customers, bringing to total number of financial institutions doing so to 12. 
Athena, Homestar, Reduce Home Loans, and Loans.com remain the only groups to have made the decision 'effective immediately,' with other lenders scheduling their cuts for between the 4th and the 24th of March.
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