The Reserve Bank of Australia has cut interest rates to a new historic low of 0.75 per cent.

Following two cuts in June and July, the RBA has lowered the official cash rate by 25 basis points in a further attempt to stimulate the economy.

The Commonwealth Bank of Australia has announced it will cut rates on standard variable mortgages by 13 basis points and rates on interest-only investor home loans will be reduced by 25 basis points.

HSBC chief economist Paul Bloxham tells Ross Greenwood interest rates will remain low.

“’Low for longer’ is the way we’ve been describing it.

“This is a new world, we haven’t had to deal with this in the past.”

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