As the end of the financial year draws closer, the Reserve Bank of Australia has today announced it has decreased the cash rate by 25 basis points.
The official cash rate is now 1.75%.
In taking this decision it appears the Reserve Bank has reacted to concerns around the relative strength of the Australian Dollar and the impact this is having on exporters and tourism, talk of a slowing housing market and new data showing inflation has dropped below their target range of 2.5 – 3%.
The market is speculating that lenders may not pass the decrease on in full, citing increased funding and regulatory costs.