The Reserve Bank has decided to cut official interest rates to a new record low of 1.75 per cent – the first change in rates since May last year.
The Bank has acted to stimulate an underperforming local economy. Low interest rates continue to support housing market activity, although the recent tightening of bank lending conditions has contributed to weakening prices growth.
The rate cut, if passed on by the banks, is positive news for mortgage holders and prospective homebuyers.
- Official rates cut
- Economy requires stimulus
- More cuts likely
- Housing markets weaken