RBA leaves path clear for further rate cuts
Many economists feel there is still room for further interest rate cuts down under and the Reserve Bank of Australia (RBA) could be in agreement.
The central bank has released a transcript of its most recent meeting, in which it was decided that the cash rate would be lowered by 50 points to 3.75 per cent.
Although the RBA did not explicitly say that it would sanction further cuts to interest rates, the minutes didn't rule it out either.
Businesses and mortgage customers were particularly glad to see the rate being slashed, although people with term deposits and other forms of savings were not so gracious.
The RBA board made their move after assessing the latest figures related to inflation and economic growth.
It is unlikely that the situation will improve drastically in the next few months, which could prompt the organisation to take further action.
"The Board decided that a reduction of 50 basis points in the cash rate was, in this instance, necessary in order to deliver the appropriate level of borrowing rates," the minutes stated.
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