RBA cuts interest rates by 25 basis points
Homeowners across the nation are likely to receive some much needed mortgage relief after the Reserve Bank of Australia (RBA) made a surprise decision to slash the official cash rate.
Despite many economists predicting the central bank would keep rates on hold until next month, the RBA lowered interest rates by 25 basis points to 3.25 per cent following yesterday's (October 2) meeting.
RBA governor Glenn Stevens said the world economy was slowing, including little growth in China which was impacting on Australian commodity prices.
"The outlook for growth in the world economy has softened over recent months, with estimates for global GDP being edged down, and risks to the outlook still seen to be on the downside," Mr Stevens said in a statement.
"Economic activity in Europe is contracting, while growth in the United States remains modest. Growth in China has also slowed, and uncertainty about near-term prospects is greater than it was some months ago."
But residential property owners are still waiting for the nation's major banks to pass on the interest rate cut.
Westpac and Commonwealth Bank both announced that "rates were under review", while NAB has confirmed that it will offer the lowest rates out of the big four banks.
Bank of Queensland has confirmed that it will cut its standard variable rate by 20 basis points, while ANZ is yet to make a formal announcement.