Due to the worsening global economic crisis, the Reserve Bank of Australia has decided to cut the standard cash rate further. This scenario leads to the decreasing percentage of home lenders who avail of mortgage with fixed interest rates. As the Europe debt situation continually affects the world market, interest rates for a 3-year mortgage deal has become lesser having an average rate of 0.6% compared to the standard variable rate which evidently is much cheaper. From the earlier months, fixed interest rates were prompted to be more expensive compared to loans with variable rates. This has created a notion that the RBA will regularly cut rates to protect Australia against the threatening economic malaise that currently takes place globally. The Reserve Bank of Australia has taken a cash rate of 4.25% interest last November and December 2011. The Central Bank’s minutes during the monetary meeting held last December 20, 2011 has decided to make a close call noting that the Reserve Bank of Australia noticed that the domestic economy has performed a bit stronger compared to the case over the last six months. The Central bank has also warned that Europe already has experienced consistent downside and has increased the risk of unstable economy affecting many nations worldwide, including Australia. Most home lenders would base the fixed loan pricing from the movement of money on the market rather than the cash rate released by RBA. However, truth is the rates in the money market are still influenced by the policy settings of the bank. As of December 20, Ratecity – a comparison group - found out that home loan clients are paying an average rate of 6.29% to cover a 3-year fixed mortgage, rather than the 6.89% standard variable rate. Last June, the standard variable rate was 7.30%, higher than the 7.42% rates that fixed loans offer to clients.