Reserve Bank Interest Rate Announcement

The Reserve Bank has cut interest rates by 0.25 per cent.

The reduction is good news for people paying off a mortgage.

The official interest rate is now 4.25 per cent.

Many lenders don't automatically readjust repayments when rates are cut, meaning borrowers often have continue paying at the same rate and watch their loan shrink faster.

Lower interest rates is also good news for retail as consumers will be more comfortable spending in a market where interest rates are going down.