The Reserve Bank of Australia have just announced another cut to interest rates. This time rates have been slashed by 1 percent. RBA Glenn Stevens said “At its meeting today, the Board decided to reduce the cash rate by a further 100 basis points, to 4.25 per cent, effective 3 December 2008.”

Some good news to come from the RBA’s meeting today was the mention that Australia is not struggling as much as some other countries. The minutes of the meeting make reference to this by stating “has been more resilient than other advanced economies”. But, due to the recent slowdown in economic growth, expansionary monetary policy has been required again.

Hopefully this will help to curb the pending financial crisis that we are all witnessing. Home owners will be relieved as they save on their mortgages. Will spending improve in order to sustain the economy?

Have your say: What do you think of the RBA’s 100 basis point cut to interest rates?