RBA set to cut rates

02/12/2008

The Reserve Bank of Australia (RBA) looks set to slash interest rates for the fourth month in a row when it meets today. Many are tipping the bank will cut rates by 75 basis points to 4.5 per cent as it seeks to stave off a recession.

CommSec's chief economist Craig James says a 75-point cut today would mean the official rate has fallen by 275 points in four months. "This is the most aggressive rate cut cycle that we've seen on record," he said. "There's still a fair bit of gloom around the place and the Reserve Bank wants to chase that away."

Source: ABC, December 2, 2008