RBA approves first consecutive rate cut since 2009
Christmas has come early for mortgage holders with the Reserve Bank of Australia (RBA) further reducing the cash rate 25 basis points to 4.25% today December 6th 2011.
The announcement follows the RBA’s decision to reduce the cash rate by 25 basis points from 4.75% to 4.5% on Melbourne Cup Day, the first rate cut in two years and the sixth consecutive time it has moved the rate up or down on cup day.
Today marks the first time since February 2009 that the RBA has made back-to-back rate cuts.
The move comes as strong growth figures out last week indicated Queensland is rebounding from the floods and with the knowledge there is not another board meeting until February.
Economists had suggested another rate cut may be on the cards in time for Christmas due to the co-ordinated action by six of the world’s major central banks to ensure commercial banks don’t fall foul of the European debt crisis.
The central banks of the US, Britain, Europe, Japan, Canada and Switzerland joined together last week to provide cheaper money for banks, a move that was welcomed by global financial markets that have been persistently dogged by the woes of Europe.