The Reserve Bank has delivered an early Christmas present and cut interest rates today by 0.25 per cent.
The official interest rate is now 3 per cent – as low as it fell during the Global Financial Crisis in 2009.
The cut comes after a recent batch of negative data about the domestic economy. The 25 basis point drop is the sixth Reserve Bank cut since November last year and will be a relief to home owners and business operators.
“Today’s decision will provide a boost to buyers and sellers in the property market,” says Domain property expert Carolyn Boyd.
“However, with things slowing down for the festive season, much of the impact may be delayed until early next year.”
Rates have now dropped 1.75 per cent since the current cycle of easing began on last year’s Melbourne Cup day.
Each 0.25 per cent drop in interest rates slices about $60 off the monthly interest cost of an average Australian mortgage.
The Reserve Bank board will now take a summer break and meet again in February.