Cash Rate Reduced by 0.50% to 3.75%
| Subdued inflation has seen the Reserve Bank put a huge dent in the official cash rate today, reducing it by a hefty 50 basis points to 3.75%.
In the first cut since December last year, a less than expected fall of the Consumer Price Index (CPI) to just 1.6% for the March quarter opened the door for the RBA to ease pressure on mortgage holders this month, although not all expected it to be this substantial.It may not all be good news for consumers however, with leading economists speculating it is unlikely banks will pass on the full cut and may instead seize the opportunity to bolster their balance sheets. |