RBA cuts interest rates to 1.75% - Lowest Rates Ever

In Australia, the Reserve Bank of Australia had cut the official cash rate this month by 25 basis points to 1.75 per cent, its lowest level ever. It was unchanged since May 2015 and this cut will put further pressure on deposits for retirees (1yrs will be pushed further below 3%) but for home borrowers the major banks may get relief from the major banks.

ANZ's cut will take effect on May 13, while NAB's cut will kick in a few days later, on May 16.

RBA cited deflation fears as the impetus for the cut. Although still slightly higher, Australian mortgages rates are moving towards UK style rates (3.5% to 3.8% APR).

According to the RBA, the available information suggests that the economy is continuing to rebalance following the mining investment boom.