Reserve Bank cuts interest rates to 3.25pc
* Interest rates cut to 3.25pc
* Cash rate now at 40-year low
* Stimulus: Rudd's $42bn cash boost
THE Reserve Bank has cut interest rates by 100 basis points to 3.25 per cent, citing a "significant deterioration" in world economic conditions since late last year.
Interest rates are now at their lowest point in 45 years.
Out of the big banks, Westpac has passed on the full 100 point cut to its standard variable home loans. Commonwealth, ANZ, NAB say rates are currently under review.
The cut in rates comes on the same day the Government announced a massive $42 billion stimulus package in a bid to kickstart the economy.
The Government said it expected economic growth to be just 1 per cent in 2008-09, slowing to a mere 0.75 per cent in 2009/10.
RBA governor Glenn Stevens said the board took into account the package of measures announced by the Government earlier today.
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