 Official rates cut again
The Reserve Bank of Australia has moved to cut official interest rates again, this time by 25 basis points.
The RBA had cut rates every month since September, but in March decided to leave rates on hold. Following today's April meeting the bank decided to lower the cash rate from 3.25 per cent down to 3 per cent, a 49-year low.
The RBA said after making the decision to hold last months rates that it was taking a "pause for a further evaluation of the situation" - it also wanted to gauge the combined effect of Rudd's stimulus plan alongside the aggressive cuts it had already made.
However, weaker than expected GDP and unemployment figures came in the wake of the RBA's decision, and earlier this week latest retail figures compounded the gloom, spurring on the cut.
Economists had been divided over whether the central bank would cut rates after its board meeting in Brisbane, or leave the cash rate unchanged this month.
The RBA has already slashed interest rates by 400 basis points - or four percentage points - since September 2008.
The treasurer has already urged the banks to pass on the rate cut to home owners. Speaking before today's announcement, Wayne Swan said he would "most certainly like to see any official rate cuts passed on as soon as possible,''
ANZ and Westpac have given no indications of passing on a rate cut, while NAB and CBA have already warned that they cannot guarantee they will pass on any rate cut to homeowners.
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