Rate cut widely predicted

A cut in the interest rate is widely predicted to be made by the Reserve Bank later today.

But it’s not only interest rates that might be slashed as the Rudd government aims to keep control of the present financial situation.

Aussie homeowners may also benefit in the coming days from moves to provide free insulation as part of the latest rescue package.

Many analysts have claimed that a cut from the Reserve Bank may equal one per cent or more, but none of the big banks have yet made clear if they’ll pass on any rate cuts to their customers to help ease the pressure on mortgage repayments.

If a cut is made, it will come shortly after an admission from prime minister Kevin Rudd that the global recession will blow a $115 billion hole in Aussie coffers.

And this means the budget would have to go into a deficit, the Herald Sun reports.ADNFCR-1761-ID-19004379-ADNFCR