RBA may cut by 1.5 per cent

The Reserve Bank of Australia is likely to decide tomorrow to set a new ‘floor' for Australian official interest rates of around 2 per cent and resolve to move to that level as quickly as possible. The official cash rate is currently set at 4.25 per cent, equal to the lowest ever, so any move down from that level is setting a new ‘floor' for Australian rates. The central bank has precedents for a big rate cut of 1.5 per cent, which the New Zealand central bank instituted last week.

Source: The Age