Reserve Bank slashes official interest rates


Good news for mortgage-holders today with the Reserve Bank cutting official interest rates by a quarter of one percentage point.

It’s the lowest the cash rate has been since October 2009.

Matthew Gharakhanian reports.

TRANSCRIPT

The Reserve Bank announced its latest cut this afternoon.

The 25 basis point drop takes the official rate to 3.25 per cent.

Federal Treasurer Wayne Swan was upbeat about the announcement.

Wayne Swan, Federal Treasurer: “So today’s announcement is good news for families and small businesses right across Australia.”

Mr Swan says Australians can be proud of their economy.

Wayne Swan, Federal Treasurer: “Under Liberal, rates went up and up. Under this Labor government, rates have been coming down. And that is a very welcome dividend from responsible budget management.”

He says a family with a $300,000 standard variable rate mortgage was now paying $4,500 a year less in repayments than when the Liberals left office in 2007.

Economists say the RBA’s decision cut was motivated by global factors, particularly the slowing growth in China.

The Reserve Board is due to meet again next month – on Melbourne Cup Day – so a further rate cut before Christmas, could be on the cards.

Matthew Gharakhanian, QUT News.