PHOTO: RBA
The Reserve Bank of Australia has cut official interest rates to a new record low of 1.25 per cent, stimulating a slowing economy as it looks to turn around sluggish employment, wages and inflation.
ANZ was the first of the big four banks to react, announcing it would trim mortgage rates by 0.18 percentage points within 10 minutes of the RBA’s decision.
It blamed increased costs in its business for its decision not to pass on the RBA’s full 0.25 percentage point cut, as Treasurer Josh Frydenberg had urged. The Commonwealth Bank, National Australia Bank and Westpac are yet to announce their intentions.
The official rate cut, just weeks after the May 18 federal election, marks the first time the RBA has used its central monetary policy lever in almost three years – the longest period of interest rate stability in Australian history.
READ MORE VIA SMH