The survey, undertaken by Finder, has highlighted that 86 per cent of respondents were oblivious to the new rate, despite the potential saving flowing through to their mortgages.
Based on the sample size, and the population of Australia, the 86 per cent figure is equivalent to 16.7 million Australians.
Finder’s money expert, Bessie Hassan, said even the smallest change to the cash rate results in investors being able to save thousands.
“If borrowers fail to keep tabs on cash rate movements, they could be missing out on a golden opportunity to save big money by either negotiating a better rate or looking elsewhere,” Ms Hassan explained.
According to the research, more than half of Australians (56 per cent) think the cash rate is higher than it is, with 13 per cent assuming it to be sitting between 5 and 10 per cent.
A further one in three (30 per cent) of Aussies alternatively indicated that they believe the cash rate to be lower than it is.
Just 10 per cent of women and 18 per cent of men surveyed could identify the correct cash rate.
Such “economic ignorance” is costing Australians, according to Ms Hassan.
“Keeping informed means knowing which direction rates are going. Next step is knowing how this impacts the interest on your mortgage,” she said.
“Take a look at your current interest rate and compare it to what’s being offered across the board. If it isn’t up to scratch, it may be time to refinance,” Ms Hassan concluded.
Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets.
Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.