RBA cuts rates by 0.25%
The Reserve Bank has cut the cash rate by 0.25%, taking the official lending rate to 4.5% following its November Monetary Policy meeting.
The bank had kept the cash rate on hold at 4.75% for a year, having last increased rates by 0.25% at its November 2, 2010 Melbourne Cup Day meeting.
Economists at all the major banks tipped the Reserve Bank to cut interest rates after September quarter underlying inflation came in under expectations.
The 0.25% cut will save borrowers around $46 a month, according to RateCity.
Larry Schlesinger
Larry Schlesinger was a property writer at Property Observer
