The Finance Brokers Association of Australia (FBAA) has urged borrowers to think twice about their next move after benefiting from the second consecutive month of interest rate cuts by the Reserve Bank.

FBAA managing director Peter White welcomed the rate cut but urged consumers not to spend all their windfall. “The Reserve Bank has admitted to concerns about the weakening jobs market and economic growth as well as risks to the global economy. These all point to the need for a cautionary approach.

“The banks need to pass this rate cut on in full and I would urge borrowers to pay some of their debt down by maintaining their repayments at the levels before the June rate cut.

“I understand the need for consumer spending to boost the economy but I also respect the need for Australians to increase their net wealth position and provide some safeguards in an economy which still has some downside.”