ஆஸ்திரேலியாவில் வீட்டுக்கடன் வைத்திருப்பவர்களுக்கு சந்தோஷமான செய்தி

THE Reserve Bank has moved to give homeowners a pre-Christmas boost with a 25 point cut to interest rates.

Concerns about falling commodity prices and stubbornly high Australian dollar as the economy falters has seen the official cash rate lowered to 3.25 per cent - its lowest level in three years.

The pressure is now on the big banks to see if they will pass on the full benefits from the cut to borrowers.

The Bank of Queensland announced this afternoon it would cut variable rates by 0.20 per cent.

Read RBA Governor Glenn Stevens' full statement here

The RBA decision, if passed on in full, will reduce by around $50 the monthly repayments on an average mortgage of $300,000.

Some economists are tipping the RBA will follow-up with a further cut on Melbourne Cup Day.

The RBA has lowered interest rates by 1.5 per cent in the past 12 months in a bid to stimulate spending in the face of the global downturn.

Concerns about a slowdown in global growth as China falters was the key driver behind the RBA board's decision to cut the official cash rate to 3.25 per cent - its lowest level in 3 years.

RBA governor Glenn Stevens said the outlook for growth has "softened" and the country's 5.1 per cent unemployment level looks set to rise in the coming months.

"Economic activity in Europe is contracting, while growth in the United States remains modest. Growth in China has also slowed and uncertainty about near-term prospects is greater than it was some months ago," he said.

Despite growth in Australia running at close to trend, Mr Stevens in a memo warned the property sector remains subdued - even though there have been some tentative signs of improvement.

Concerns about the strong Australian dollar and falling commodity prices were also upper-most in the RBA's decision making.

"Credit growth has softened of late and the exchange rate has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook," Mr Stevens said.

But in veiled warning to the big banks to pass on the rate cut to borrowers, the RBA said that in recent months Australian banks have had "no difficulty" accessing funding.

Treasurer Wayne Swan says a 25 basis point cut in official interest rates is due to "responsible budget policy".

Mr Swan told reporters in Canberra working families and small businesses deserved the cut.

"These cuts have been made possible by our responsible budget policy," Mr Swan said.

"The official cash rate is lower than at any time under the Howard government."

He said a family with a $300,000 standard variable rate mortgage was now paying $4500 a year less in repayments than when the Liberals left office in 2007.

Mr Swan said Australia was grappling with lower commodity prices, a higher dollar and global uncertainty.

"When we look at these factors we must keep a very keen eye on our fundamental strengths," he said.

"We have low official interest rates, contained inflation, solid growth, low unemployment, healthy consumption and a very big pipeline of investment."

Mr Swan said slowing growth in China had been a consideration in the RBA decision but it wasn't as dire as some people were projecting.

"We shouldn't forget... whilst China may be growing a little more slowly than people had anticipated, it's doing it from a very much bigger base," Mr Swan said.

He said the Chinese economy was 40 per cent larger than it was prior to the global financial crisis, meaning even growth rates of seven or eight per cent were "substantial".

The latest cut follows a quarter of a percentage point reduction in June, that followed a half a percentage point cut in May.

The RBA also cut by 25 points in November and December last year.

News.com.au

Edited October 2, 201213 yr by SUNDHAL