The Reserve Bank of Australia slashed the official cash rate to an historic low of 1.5 per cent today.
In the wake of low inflation figures and no movement from the Fed last month, the cut came as little surprise to the market.
The interest rate cut will be welcome news for borrowers. If lenders pass on the cut in full, it could see mortgage repayments reduced by thousands of dollars over the life of a loan.
However, savers and retirees already grappling with record low returns on savings and term deposits are likely to be less cheerful.
RateCity analysis shows lenders take up to 60 days to pass on RBA interest rate cuts in part or in full, but most lenders have passed on the cuts about a month after the RBA meets.