RBA Cuts Interest Rates to Record Low 2.75%Cheers borrowers with rate cut
The Reserve Bank has slashed interest rates by 25 basis points to a historic low of 2.75 per cent, the first reduction this year.
The decision followed a spate of soft economic data that increased calls by industry groups and other observers for a lower cash rate.
At its meeting today, the Board decided to lower the cash rate by 25 basis points to 2.75 per cent, effective8 May 2013.
"The global economy is likely to record growth a little below trend this year, before picking up next year. Among the major regions, the United States continues on a path of moderate expansion and China’s growth is running at a more sustainable, but still robust, pace. Japan has announced significant new policy initiatives aimed at strengthening demand and ending deflation. The euro area remains in recession. Commodity prices have moderated a little in recent months though they remain high by historical standards.
Financial conditions internationally continue to be very accommodative, with risk spreads reduced, funding conditions for most financial institutions improved and borrowing costs for well-rated corporates and sovereigns exceptionally low"
Erik Abbenhuys of Abbcon Associates says "This is great news for the property market in particular for first home buyers and property investors.
With residential property prices now at the lowest we are likely to see, there has never been a better thine to get into the market.
The added deductions you can obtain using our Depreciation Schedules, makes property more attractive than ever"