RBA cuts cash rate to record low 1.75 per cent

The RBA has cut the cash rate to 1.75 per cent at its May board meeting.

The Reserve Bank (AAP) Source: AAP

The Reserve Bank has cut the cash rate to a record low of 1.75 per cent.

The announcement on May 3 brought the cash rate to the lowest it has ever been in its more-than 25 year history.

RBA head Glenn Stevens said the decision followed lower-than-expected inflation.

“At present, the potential risks of lower interest rates in this area are less than they were a year ago,” Mr Stevens said.

He said there were signs controls on lending in the housing market had been effective and standards had improved.

The economy continues its transition, he said.

“In Australia, the available information suggests that the economy is continuing to rebalance following the mining investment boom,” Mr Stevens said.