Reserve takes an axe to interest rates

Low-interest home loans may soon be easier to come by after the Reserve Bank of Australia cut the base rate of interest by a whopping one per cent.

From tomorrow (October 8th), interest rates will be lowered to six per cent, its biggest cut in 16 years.

The bank said that the move was made necessary by the dramatic events of the last month, where banks around the world have faltered and crumbled under the weight of the credit crunch.

It added that in recent times, cheap credit cards and low-interest home loans had been difficult to come by, even for those Aussies with impeccable credit histories.

Commenting on the announcement, Phil Naylor, of the Mortgage and Finance Association of Australia, told “It’s good news for buyers, it’s good news for sellers, and it’s good news for all. It was a great decision by the <a href=”//">RBA."

He added that first-home buyers are likely to flood back into the market following the bank’s decision.ADNFCR-1761-ID-18817286-ADNFCR