Sydney 6 August 2013. The Reserve Bank of Australia has cut interest rates for the second time in 2013.

The decision was made to reduce interest rates by a further 25 basis points to 2.50 per cent at its August board meeting.

REINSW President Christian Payne said the RBA’s decision to reduce interest rates would help to boost consumer sentiment and the economy generally.

“The RBA has made the important decision today to support the property market by reducing interest rates,” he said.

“We have already seen an increase in consumer confidence following the decision to cut interest rates in May and this reduction will further improve that confidence, providing flow-on effects to the property market.

“It is a win for everyone, in particular those who are seeking to take the first steps to establish themselves on the property ladder,” Mr Payne said.

The RBA cut interest rates 25 basis points at its meeting in May. Last year it lowered interest rates four times, with falls of 25 basis points in December, October and June and 50 basis points in May.

The RBA will next meet on Tuesday, 3 September 2013.