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Interest rates cut to new record low but economists say more to come

The Reserve Bank of Australia has cut interest rates for the second time in as many months.

It has lowered the official cash rate by 0.25 per cent, bringing it to a historic low of 1.00 per cent.

ANZ has announced it will pass on the full rate cut for its variable interest home loan rates after only passing 0.18 per cent of the June rate cut.

The Commonwealth Bank will pass on the full rate cut to interest-only borrowers but only 0.19 per cent to home buyers with principal and interest loans.

ANZ Head of Australian Economics David Plank tells Ross Greenwood he thinks the cash rate will reach 0.75 per cent.

“We think when they update their forecast in August they’ll reach the same conclusion, that more needs to be done.”

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