PHOTO: RBA cuts interest rates
The Reserve Bank has cut interest rates to an historic low of 1 per cent, as it stares down the twin issues of rising unemployment and a slowing economy.
The 0.25-percentage-point cut follows a move at last month’s meeting and is the first back-to-back cut since 2012, amid fears of a global financial meltdown flowing from European banks.
ANZ was the first major bank to react, announcing it would pass on the 25-basis-point rate cut in full to all of its variable home loan customers.
The Reserve Bank’s decision was largely expected, with the market pricing a roughly 80 per cent chance of a cut ahead of the RBA board meeting.