RBA lowers interest rates to 3%

RBA lowers interest rates to 3%

The Reserve Bank of Australia has cut interest rates today by 25 basis points, to 3 per cent.

The decision is in line with a number of economists predictions who predicted a cut to the cash rate as a buffer against falling commodity prices.

The official cash rate is now at its lowest point since October 2009, at the peak of the Global Financial Crisis, and Federal Treasurer Wayne Swan says it a reflection of the good work the government is doing, to keep the economy strong.

But Shadow Treasurer Joe Hockey says the opposite is true, and the RBA has been forced to lower interest rates to emergency levels, because the government is failing to address the deterioration of the non-mining sector of the economy. 

The Bank of Queensland has become the first to announce a cut to its own mortgage rate by 0.2 per cent.

Prime Minister Julia Gillard is urging the Big 4 banks to pass the rate cut on in full.

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Libby Dreyer
Libby Dreyer 1729 posts

Libby has worked as a Senior Journalist at National Radio News since February 2011. She graduated with a Bachelor of Journalism from the University of Canberra in December 2010.

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