The Reserve Bank of Australia (RBA) announced that they have cut interest rates by 0.25%, reducing the official cash rate to a historic low of 2.75%. The Australian Dollar (AUD) is trading at $1.0179 in response to the move.
This is the first time the central bank has cut interest rates below 3% since it began setting monetary policy in 1990.
NAB was the first of the big four banks to lower its standard variable home loans. It cut the rate by 25 basis points to 6.13 per cent per annum. The Bank of Queensland also lowered its rates by 25 basis points to 6.26 per cent, citing lower funding cost in the wholesale market.