RBA cuts interest rates


RBA cuts interest rates

Posted on Tuesday, October 02 2012 at 2:50 PM

The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to 3.25 per cent.

If passed on in full by lenders, today’s
reduction would save homeowners about $50 a month in repayments on the average
mortgage.

It’s unclear how much of the cut banks will
pass on.

This is the third official reduction in
2012. Most economists expected the RBA would sit tight once again this month,
believing movement in November was more likely.

The decision was based on factors such as
continuing lackluster global economic conditions and a fall in Australian
commodity exports in the past quarter.

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