Relief for Millions as RBA Cuts Interest Rates
- On Tuesday, the Reserve Bank of Australia lowered the official interest rate by 0.25 percentage points to 3.85 percent, reducing borrowing expenses across the country.
- The cut follows sustained progress in reducing inflation and reflects ongoing uncertainty from domestic and international economic conditions.
- This is the second rate reduction this year, with major banks committing to pass on the full cut to variable rate mortgage holders starting late May and early June.
- An average home loan of about $660,000 could save $213 monthly, and experts suggest further rate cuts remain possible amid cautious inflation forecasts.
- The easing aims to support households with mortgage stress without undermining inflation control, but the RBA maintains a cautious outlook given global risks.
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RBA cuts interest rates for second time in 2025
SBS Finance Editor Ricardo Gonçalves speaks with NAB Chief Economist Sally Auld about the RBA's decision to cut interest rates and how US trade policy influenced its decision, plus Rhayna Bosch speaks with Catherine Allfrey from WaveStone Capital to find out how it impacted the sharemarket
·Sydney, Australia
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Leaning Left4Leaning Right3Center0Last UpdatedBias Distribution57% Left
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R 43%
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