Australia trims interest rates

The cost of borrowing in Australia to purchase property may be about to come down as the country has cut interest rates for the first time in seven years.

Following recent falls in the rate of economic growth the Reserve Bank of Australia lowered the official cash rate by 0.25 per cent to seven per cent.

Such a decision was welcomed by the leader of Australia's opposition, Dr Brendan Nelson, who told ABC Radio: "I think all Australians, including myself, who have a mortgage, a business overdraft or a credit card, we all welcome the cut in interest rates."

Britons hoping to buy a house in Australia may also be pleased as this could reduce costs for those looking for a home in the country.

In its statement, the Reserve Bank stated that the decision was made in view of the expectation that inflationary pressures will soon start easing.
 

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