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RBA Slash Interest Rates

By Eleanor Hopkins

WITH less than three weeks to go until Christmas, homeowners today have reason to celebrate early after the Reserve Bank chose to slash interest rates by 25 basis points to 4.25 per cent.

With the Reserve Bank not meeting next until February, the move has been welcomed by analysts and economists alike, with markets this morning pricing in a 65 per cent chance of a cut, largely as insurance against the debt crisis engulfing Europe.

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