Reserve Bank cuts interest rates by 75 basis points to 5.25%
The third consecutive drop takes the official rate to 5.25 per cent, its lowest level since May 2006.
Last month the RBA stunned observers by taking the official interest rate from 7 to 6 per cent.
Federal Treasurer Wayne Swan yesterday said interest rate cuts should be passed on in full as soon as possible.
“I would expect banks to pass on any cut … as quickly and as rapidly as they possibly can,” he said.
Analysts say October’s panic-driven selling had been in line with an historical trend of October being the worst month for the markets.
But confidence appears to be returning as fund managers take advantage of bargain stocks, supported by retail investors as credit markets thaw somewhat.
The Reserve Bank of Australia (RBA) has slashed interest rates by 0.75 of a percentage point.
Opposition Leader Malcolm Turnbull is taking the same stance, saying despite the global economic turmoil, the banks are in a good position to pass on a rate reduction.
“The banks should pass on the entirety of that cut, they are in a position to do so, in my view,” he said.
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