The RBA’s biggest interest rate cuts: a timeline since 1990
Before yesterday the last time the RBA reduced interest rates by 50 points or more was in February 2009, when it trimmed the cash rate by 100 basis points t0 3.25%.
The February 2009 rate cut was the fourth in a series of successive big rate cuts following the GFC, during which the central bank cut a cumulative 375 basis points from the cash rate of 7% in August 2008.
An even longer series of big rate cuts occurred in the early 1990s following the 1991 recession.
There have been nine smaller interest rate cuts of 25 basis points over the last 22 years.
Over this time the RBA has cut rates 35 times and raised them 27 times.
Here’s a rundown of when rate cuts of 50 basis points or more have taken place:
100 basis points
February 2009 – cash rate down to 3.25%
100 basis points
December 2008 - cash rate down to 4.25%
75 basis points
November 2008 - cash rate down to 5.25%
100 basis points
October 2008 - cash rate down to 6%
50 basis points
April 2001 - cash rate down to 5%
50 basis points
February 2001 - cash rate down to 5.75%
50 basis points
July 1997 - cash rate down to 5.00%
50 basis points
May 1997 - cash rate down to 5.5%
50 basis points
December 1996 - cash rate down to 6%
50 basis points
November 1996 - cash rate down to 6.5%
50 basis points
July 1996 - cash rate down to 7%
50 basis points
July 1993 - cash rate down to 4.75%
50 basis points
March 1993 - cash rate down to 5.25%
75 basis points
July 1992 - cash rate down to 5.75%
100 basis points
May 1992 - cash rate down to 6.5%
100 basis points
January 1992 - cash rate down to 7.5%
100 basis points
November 1991 - cash rate down to 8.5%
100 basis points
September 1991 - cash rate down to 9.5%
100 basis points
May 1991 - cash rate down to 10.5%
50 basis points
April 1991 - cash rate down to 11.5%
100 basis points
December 1990 - cash rate down to 12%
100 basis points
October 1990 - cash rate down to 13%
100 basis points
August 1990 - cash rate down to 14%
100 - 150 basis points
April 1990 - cash rate down to 15% to % 15.5%
50 basis points
February 1990 - cash rate down to 16.5% to % 17%
50- 100 basis points
Jan 1990 - cash rate down to 17.00% to % 17.5%