News

Official interest rates in Australia have been slashed to a new record-low of 1.25 per cent - the first move in nearly three years.

In the first Saturday since the federal election, auction clearance rates in Melbourne and Sydney bounced strongly back to levels that sustain a stable market.

An interest rate cut next week would be the start of the end for falling house prices according to economists.

The federal election result appears to have given a boost of confidence to the housing market and to assist matters regulators are moving to ease up on their restrictive lending policies.

In the wake of the surprise federal election result the Reserve Bank has indicated a rate cut is likely next month and wants the Morrison Government to join in stimulating the national economy.