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RBA Lowers Rates

By Cathy Pieroz

By dropping the cash rate to 2.50 per cent at its board meeting on Tuesday, the Reserve Bank of Australia has set the cash rate to the lowest point ever, under its current inflation targeting regime.

Loan Market director Mark De Martino welcomed the 25 basis point drop saying that the rate cut would most likely be matched by banks around the country and that home owners would have the opportunity to keep more money in their pocket or pay off their homes faster.

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