The Reserve Bank of Australia this afternoon cut interest rates by 25 basis points to 2.5%, the lowest cash rate seen in Australia since 1960.
RBA Chairman Mr Glenn Stevens said the cut was appropriate in the current economic climate, emphasising the impact of subdued inflation and a depreciating Australian Dollar.
“The Australian dollar has depreciated by around 15 per cent since early April, although it remains at a high level”, said Mr Stevens.
“The Board has previously noted that the inflation outlook could provide some scope to ease policy further, should that be required to support demand. The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the inflation target over time.”
Cooke and Hutchinson Legal Practice Director Mr Daniel Hutchinson has applauded this move from the RBA.
“This latest cut to the cash rate is an exclamation point on what is proving to be a significant period of opportunity in the local real estate market”, said Mr Hutchinson.
“Just when you thought things couldn’t get better for home owners, the cash rate gets cut to levels not seen in 50 years!
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“I encourage anyone who may be sitting on the fence about entering the property market to take advantage of these historic low interest rates.”