Yesterday’s RBA decision to cut interest rates by a further 0.25% was in my opinion overdue and has been welcomed by many economists and of course business owners and home owners.
Interest rates are now the lowest in over 50 years, or to be precise, the lowest interest rates since 1959.
Response to previous cuts has been somewhat subdued with the economy not responding to the lower rates as hoped.
The aim of the latest cut is to help with the transition between the slowdown of Australia’s mining boom and to encourage growth in manufacturing, construction and other non-resources sectors.
Some industry experts are suggesting we can expect another interest rate cut later this year.
By Darryl Simms
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