Interest Rate Cuts give Consumers more Spending Money for Christmas.

Interest rate Cuts give Consumers more spending money for Christmas.

On Tuesday the Reserve Bank of Australia has reduced interest rates by 25 basis points in a bid to boost consumer spending and improve the depressed property market.

The Commonwealth Bank immediately reduced its interest rate on standard variable home loan accounts by 25 basis points to 7.56 per cent effective from November 4.

The 0.25 basis pont reduction in Westpac’s standard variable home loan rate however will not become effective untill November 14.

Retailers can look forward to a better Christmas selling season after the November interest rate cut and the further outlook is more positive for retail sales with analysts projecting further rate cuts early next year.