The Reserve Bank of Australia has cut the cash rate by 100 basis points to 3.25 per cent, its lowest level since 1964.
This move by the Reserve Bank of following its board meeting in Sydney on Tuesday was in line with what most economist were expecting.
This cut today 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 this savings would equate to $60,000 plus.
The RBA has now cut a four full percentage points off its cash rate since it started back in September 2008.
To find out how much of the rate cut was passed to consumers by banks and lenders, please visit "Home Loans Interest Rates - February 2009" article.