Rates cut by 0.25%
AUSTRALIANS got an early Christmas present today with the Reserve Bank cutting the overnight cash rate by 25 basis points.
The overnight rate, which banks historically have used to base their own interest rates is now 3 percentage points - the lowest level since September 2009.
The move had been largely expected with the sharemarket down slightly throughout the morning waiting on the news.
CommSec chief economist Craig James said before the 2.30pm announcement that if the bank had cut interest rates at its monthly meeting today it would "need to defend itself on the accusation that it was overly cautious and perhaps unduly optimistic".