One thing is for sure is that the banks will cut savings rates immediately and so a thought should be spared for the person who saves money rather than borrows to the hilt. After tax and inflation my cash savings are becoming worth less (in real terms)every year now and consequently becoming poorer. Also I think we all know that its more the fact that Perth has had a property bubble and prices are just too high to be justified, that is causing buyers to be wary and rightly so. A 0.25 basis point cut in the cash rate will not have me jumping at the bit to invest in Perth property just now. Though if they cut interest rates below the rate of inflation then i guess id be just as crazy to save money......