RBA cuts cash rate to 5.25 per cent from 6.0 per cent
04 Nov 2008 2:36 PMRBA cuts cash rate to 5.25 per cent from 6.0 per cent
CANBERRA, Nov 4 AAP - The Reserve Bank of Australia (RBA) has cut its key interest rate by a larger than expected three-quarters of a percentage point to 5.25 per cent following today's monthly board meeting.
Economists had widely tipped a half a percentage point rate cut.
Assuming the rate cut is passed on in full by retail banks, home owners with an average300,000 mortgage will see a further $150 knocked off their monthly repayments.
The central bank cut the rate by a surprise one percentage point last monthto prevent the economy being dragged into a recession in the face of a deepening global financial crisis.
Economic data since then has proved grim reading, pointing to rising unemployment, falling house prices and weak consumer spending.
This is on top of extremely volatile share markets and growing negative superannuation returns.
However, RBA Deputy Governor Ric Battellino warned last week that the central bank is still concerned about the inflation outlook.
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