Aussie cash rate cut

Australia's cash rate is to be cut by another 100 basis points, the Reserve Bank of Australia has announced...

The move, which brings the country's cash rate - the equivalent of the base rate in the UK - down to 4.25 per cent, has been made to help combat inflation in the country, Governor of monetary policy Glenn Stevens stated.

"Weighing up the international and domestic developments of recent months, the board judged that a further significant reduction in the cash rate was warranted now," Mr Stevens explained, noting that lending rates should fall significantly to below-average levels as a result.

Property investors considering making a purchase in the country are likely to welcome the move, as it may result in cheaper mortgages being made available to potential homebuyers.

Investors who have already purchased property in the country are currently seeing good returns, with the RP Data-Rismark Hedonic Property Value Index reporting a 0.3 per cent increase in house prices in the three months up to the end of October.

Source: www.propertyshowrooms.com