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RBA cuts interest rates to 1.50%

The Reserve Bank of Australia has cut interest rates by 25 basis points for the second time in 2016 to 1.50 per cent.

REINSW President John Cunningham said speculation around an August 2016 interest rate cut had been gathering momentum for some time.

“The records continue to be set in regard to interest rates and it is now widely speculated that we may see further interest rate falls in 2016,” Mr Cunningham said.

“All eyes are now on the banks to see if they will pass on the full 25 basis point cut,” Mr Cunningham said.

The official cash rate has fallen 325 basis points since November 2011, with the most recent cut of 25 basis points in May.

The RBA will next meet on Tuesday, 6 September 2016.