By Stephen Johnson For Daily Mail Australia
Published: 05:30 BST, 1 October 2019 | Updated: 05:51 BST, 1 October 2019
Interest rates have been cut to a new record low of just 0.75 per cent.
The Reserve Bank of Australia eased the cash rate by 25 basis points, or a quarter of a percentage point on Tuesday.
Interest rates had previously been cut in June and July.
The latest cut means mainstream standard variable mortgage rates will fall below three per cent for the first time ever, depending on how much the major banks pass on of the October cut.
Interest rates have been cut to a new record low of just 0.75 per cent. The Reserve Bank of Australia has eased the cash rate by 25 basis points, or a quarter of a percentage point
The latest rate cut also means Australia is now just three rate cuts away from having zero interest rates, a situation known as quantitative easing.
RBA Governor Philip Lowe said consumer spending was particularly weak.
'The main domestic uncertainty continues to be the outlook for consumption, with the sustained period of only modest increases in household disposable income continuing to weigh on consumer spending,' he said on Tuesday.
Dr Lowe said also interest rates were likely to stay low for a while.
'It is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full