Interest rates cut to 4.5%

MORTGAGE-holders had a win yesterday with a 0.25% drop in the official cash rate.

The Reserve Bank of Australia cut the cash rate to 4.5%.

Tweed and southern Gold Coast business leaders applauded the decision.

Destination Tweed chief executive officer Phil Villiers said it was "great news for the tourism economy, particularly leading up to Christmas to put some confidence in the economy".

Creek to Creek Chamber of Commerce president Darren Mackintosh said with business struggling the cut was long overdue.

"For the business community we must see that cut come through in the business loans," Mr Mackintosh said.

The Federal Member for Richmond Justine Elliot said it was welcome news for families.

"A mortgage is the biggest burden on most family budgets, so this is some very welcome relief for a lot of families facing cost of living pressures," Ms Elliot said.

She said the interest-rate cut meant anyone on the North Coast with a $250,000 mortgage would pay $41 less per month in interest repayments.

In a statement to the market the Reserve Bank said there was a downturn in the global economy, but the fears of a major downturn had "not been borne out so far".

On the domestic market the bank said inflationary pressure had eased.