Breakfast

It was widely anticipated, but it was welcome news none the less. Yesterday, the Reserve Bank cut official interest rates for the first time in seven years and the major lenders didn't wait for another lecture from the Rudd government. Within minutes of the RBA announcement, all the Big Four banks pledged to pass on the 25 basis point cut to their mortgage holders.

But while the rate cut is good news for households, it's also a signal the Reserve Bank is worried about the slowdown in the economy. Just how deep the downturn, we'll find out today when the Bureau of Statistics releases its latest report card on the health of the Australian economy.

Guests

Dr Shane Oliver
Chief economist, AMP Capital Investors

Reporter

Business Editor Sheryle Bagwell

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