Rate cut of 0.25 per cent expected for April
Official interest rates are expected to drop to 2.5 per cent by June with financial markets now expecting a cut of 0.25 per cent in April. The Reserve Bank said yesterday that recent big interest rate cuts had stimulated the housing sector and provided good support for household cash flows, housing affordability and the economy generally. The RBA expects spending on housing to accelerate by the second half of 2009, led by increased demand from first home buyers.
Source: The Australian Financial Review