Australian Prime Minister Kevin Rudd said on Tuesday the first official interest rate cut in nearly seven years will provide modest relief for mortgage holders.
The Reserve Bank cut its key rate by a quarter of a percentage point to 7.0 percent following Tuesday's monthly board meeting. The move had been widely anticipated and the major retail banks have already indicated they will pass on the cut to their customers in full.
"(The rate cut) will provide some relief, some modest relief to mortgage holders right across Australia," Rudd told the parliament.
"The government knows there is still much more to be done in helping Australian families dealing with cost of living pressures," he said.
The interest rate cut would put nearly 600 dollars (510 U.S. dollars) a year back into the budget of a family with an average mortgage.
"I am advised that for 740,000 first-time buyers, this will be the first time they have ever experienced an interest rate cut," he said.
Source:Xinhua
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