Fed: Reserve likely to cut rates 0.25 per cent this morning

AAP General News (Australia)
12-05-2001
Fed: Reserve likely to cut rates 0.25 per cent this morning

The Reserve Bank is set to cut interest rates by a quarter of a per cent this morning
to keep Australia from falling into the worldwide economic downturn.

A 0.25 per cent cut would give mortgage holders an extra $22 a month in their pockets
on an average $150,000, 20-year loan.

After going through the election campaign without making a move on rates, all analysts
are tipping the Reserve board will use its last meeting before February, to cut rates.

If the Reserve moves on rates, the decision will be announced at 9.30am (AEST), just
ahead of the national accounts figures.

AAP RTV sw/rg

KEYWORD: ECONOMY (CANBERRA)

2001 AAP Information Services Pty Limited (AAP) or its Licensors.