RBA CUTS RATES 0.25% – let’s see how much lenders pass on!

The Reserve Bank of Australia has announced their decision to cut the cash rate by a further 0.25% ahead of the Christmas and New Year period, as it seeks to stimulate economic activity amid mounting global headwinds. As Europe’s sovereign debt crisis gains steam and credit markets continue to freeze, the RBA board decided bringing the cash rate down to 4.25% with an extra quarter of a percentage point cut was necessary to buoy the local economy.