The Reserve Bank has slashed rates again, cutting its key rate by another 100 basis points to a record low 3.25%.
Today's cut will save a mortgagee with a typical 30-year, $300,000 home loan about $170 in monthly repayments if the lender passes on the fall amount. Over the life of the loan, the savings will total about $61,272.
The RBA has now lopped four full percentage points off its cash rate since it changed tack and began cutting rates last September. The cash rate has not been this low since 1960, according to Bloomberg data.
The rate reduction comes hours after the Federal Government announced a $42 billion stimulus plan aimed at keeping the economy out of a recession. The spending includes some $12.7 billion in cash payments and $28 billion on new infrastructure projects including roads and schools.
Today's RBA cut matched market expectations.
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