PHOTO: The Reserve Bank
The Reserve Bank is poised to take official interest rates below 1 per cent even as evidence grows its previous rate cuts have supercharged the Sydney and Melbourne property markets with values growing eight times faster than inflation.
Economists from all major commercial banks believe the RBA will slice the cash rate to 0.75 per cent when it meets on Tuesday, following up its back-to-back rate cuts in June and July. If passed on in full, such a cut would save $55 a month on a $400,000, 30-year mortgage.
When the bank started cutting rates, there were some concerns that instead of boosting the jobs market, the move could power-up the property market.
READ MORE VIA RBA