The Australian stock market finished on a positive yesterday, following the Reserve Bank's decision to slash interest rates by one full per cent. The move from the RBA prompted a positive day in Asian markets, which in turn helped our markets. 
Our stock markets finished more than 1 per cent up, after it had been down more than 3 per cent.
All the major five banks, as well as Bendigo Bank, cut variable rate home loans yesterday by 80 basis points, which will save home owners around $140 per month on a $200,000 mortgage.
ANZ chief economist Saul Eslake praised the RBA's dramatic rate cut.
"I would describe today's move as extraordinary and bold," Mr Eslake said.
"I think it will be seen firstly as contributing to the health of the financial system and a big step to reducing the downside risks to economic growth, provided it isn't interpreted as panic.
"There's a risk of that, but I hope it is not interpreted in that way, and it is not a criticism on my part." Prime Minsiter Kevin Rudd praised the RBA's decision yesterday, but the opposition leader, Malcolm Turnball, wants to see the banks pass on the full 1 per cent rate cut, saying he believes they "have the profitability" to do so.
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