Cash rate reduced to 2.5%

The Reserve Bank of Australia has just announced a 0.25% reduction in interest rates leaving the official cash rate at a record low of 2.5%.

The decision was anticipated by a number of economists and a speech by Glenn Stevens made last week indicated another rate reduction was on the cards based on a number of areas of the Australian economy.

The rate cut this month will further assist those looking to enter the property market.

There are an increasing number of suburbs across Australia where it’s cheaper to buy than rent, so now could be a good time to buy.