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Reserve cuts rates to lowest in five decades
Posted 1 minute ago
Map: Australia
The Reserve Bank has cut official interest rates to their lowest level in more than five decades.
The bank's board decided to lower the RBA's official cash rate target by 25 basis points to 2.75 per cent.
That is the lowest level since the bank started targeting inflation in the early 1990s, but also lower than the official cash rates (or equivalents) prevailing for the past 53-and-a-half years, according to data compiled by CommSec.
If passed on in full by retail banks, the cut will take the average standard variable mortgage rate down to around 6.2 per cent, which is still higher than the 5.75 per cent low seen during the peak of the global financial crisis in 2009.
CommSec's figures show the record low standard variable home loan rate was 5 per cent in May 1964.
A 25-basis-point reduction will take just under $50 a month from the repayments on a $300,000 loan on a 25-year term.
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http://www.abc.net.au/news/2013-05-07/reserve-cuts-rates-to-lowest-in-five-decades/4674944