RBA cuts cash rate by 25 basis points to 3.5%

The Reserve Bank has cut the cash rate by 25 basis points to 3.5% today following its June monetary policy board meeting.

This is the lowest the cash rate has been since November 2009.

Borrowers will find out in the next few days how much of the rate cut will be passed on to them by their lenders.

ANZ will make its independent interest rate announcement on Friday, June 8 – the second Friday of the month.

Ahead of the RBA announcement, a Reuters poll of 20 economists had 10 expecting a 25-basis-point rate cut, four expecting no change, and six expecting a 50-basis-point cut.

This was up from just four out of the 19 economists surveyed last week by Bloomberg, who expected the RBA to cut rates today.

This article first appeared on Property Observer.