Fed: RBA slashes cash rate to 4.25 per cent

AAP General News (Australia)
12-02-2008
Fed: RBA slashes cash rate to 4.25 per cent

CANBERRA, Dec 2 AAP - The Reserve Bank of Australia has slashed the official cash rate
by 100 basis points to a seven-year low of 4.25 per cent following Tuesday's monthly board
meeting.

The fourth rate cut in as many months means that homeowners will save around $193 a
month in repayments on an average mortgage of $300,000, should the retail banks pass on
the reduction in full.

Economists had generally tipped a 75 basis point reduction by the central bank.

The Reserve Bank has lowered the cash rate by a savage 300 basis points since September
as it tries to prevent the economy from being sucked into a global recession.

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KEYWORD: RATES RBA UPDATE

2008 AAP Information Services Pty Limited (AAP) or its Licensors.