RBA cuts interest rates to 1.75%
RBA Cuts Interest Rates to Historic Low Amid Deflation Concerns
The Reserve Bank of Australia has moved to head off fears about deflation, cutting its official cash rate by 25 basis points to a historic low of 1.75 per cent.
Key points:
Cut influenced by core inflation rate of 1.5pc — lowest reading on record
If cut fully passed on, it would mean a $43-a-month saving on a 25-year, $300,000 mortgage
“Potential risks of lower interest rates… are less than they were a year ago,” RBA governor says
It is the first change in interest rates since May last year, when rates were cut 25 basis points to 2 per cent. The Australian dollar immediately tumbled 1 per cent to below 76 cents against the US dollar in response to the cut.
Source:
http://www.abc.net.au/news/2016-05-03/rba-cuts-interest-rates/7378532