UPDATE: Interest Rates have officially been cut by 0.75 percent, leaving the current interest rate at: 5.25%

Where money is being splashed around, being lost and being gained, the Reserve Bank of Australia will be meeting with the focus on cutting interests rates by another 0.5 percent. This of course isn’t certain, only theory by economists not to mention ANZ, CommSec, AMP and Austock’s Michael Heffernan predicting the cut. However, Mark Dutton spoke for most experts suggesting the slow economy would push the RBA into cutting rates between 0.5 to 075 where as Robert Camilleri of Aviva Investments was more optimistic, saying he believed the banks would cut rates by 1 per cent.

An interest rate cut is of course vital in our economy though it’s uncertain how much improvement this can do to the economy, asking questions like how much would rates fall. According to News.com.au, a rate cut of 0.5 percent would would lower payments on a 25-year mortgage of $250,000 by about $85 a month, meaning more money for necessities like groceries.

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Information: News.com.au