What an RBA interest rate cut means

The Reserve Bank of Australia cuts interest rates by 25 basis points, to bring the official cash rate down to 1.25 per cent.

Source: iStockphoto

The Reserve Bank of Australia cuts interest rates by 25 basis points, to bring the official cash rate down to a record of 1.25 per cent.

Cuts rates is meant to boost the economy, but in generally considered a marker of economic weakness.

A rate cut has the potential to stimulate consumer sentiment and stem further falls in house prices.

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