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'It's official'.
The Reserve Bank has cut interest rates to 1% – now the lowest rate in Australia's history. That’s 25 basis points! Another 0.25 percentage point drop – down from 1.25%. That makes it two cuts in a row, after the RBA cut the rate, in June, from 1.5% to 1.25%.
Great news for existing mortgage holders if the banks pass 100% of the rate drop through, and potentially it's great 'affordability news' for new home buyers. But not such a great indicator for the general economy
The offical line from Phillip Lowe, the RBA governor is “Today’s decision to lower the cash rate will help make further inroads into the spare capacity in the economy,” he said. “It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target.”