Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

RBA slashes rates by 100bps

Staff Reporter 1 minute read

The Reserve Bank today stunned financial markets with a dramatic 100 basis point reduction to the official cash rate.

The cash rate now sits at a two year low at six per cent however the one per cent cut was the largest delivered in 16 years.

Glenn Stevens, RBA governor, said international financial market conditions had taken a “significant turn for the worse” in September and that the board recognised a “material change to the balance of risks” surrounding the Australian economy.

Mr Stevens indicated that the significant reduction was intended to benefit both lenders and borrowers as funding costs continue to rise.

“An unusually large movement in the cash rate was appropriate in order to bring about a significant reduction in costs to borrowers,” Mr Stevens said.

“Financing is likely to be difficult around the world for some time ahead.”

Advertisement
Advertisement
Published: 07-10-08

Today's other news

 

RBA slashes rates by 100bps
default
TheAdviser logo
default

TODAY'S POLL

View results >

Who do you aggregate through?

Thank you for your vote, you can see the results here.

more from the adviser
fingerprint VOI rule changes postponed due to COVID

ARNECC has advised that it has reassessed its proposed amendments...

approval stamp documents ta Bank automates pre-approval process

A non-major lender has announced changes to its pre-approval proc...

2017 08 20 Foreign buyers struggle to secure mortgage

Foreign buyers from all parts of Asia are still finding it diffic...

FROM THE WEB