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Comment on RBA interest rate cut

"Today's 0.25 per cent reduction in the cash rate will reinforce existing stimulus measures to boost household spending, business investment and job creation at a time when parts of the economy are clearly under increased pressure," Ai Group Chief Executive, Innes Willox, said today.

"While there is some debate about the impacts of this further reduction in rates given that rates are already at very low levels, there is no doubt that a full pass-through to borrowers by the banks is critical for the reduction to be as effective as possible. With rates where they are, attention will no doubt turn to other possible methods of stimulus in either monetary or fiscal policy," Mr Willox said.

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