BREAKING NEWS: Reserve Bank cut official rates by 1% to 4.25%

The Reserve Bank board will meet this afternoon for the final time in 2008, and most commentators are expecting another big cut to official interest rates.

The Reserve Bank has cut the official interest rate by 100 basis points to 4.25%, the lowest point since May 2002.

It is the fourth consecutive rate cut in as many months, as the bank attempts to cushion the slowing economy from recession.

The bank has now slashed 3% from the official cash rate in the past three months.

The move has surprised the market, with an AAP survey of 18 economists revealing the majority believed the bank would cut the official cash rate by 75 basis points.

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