I guess I will be worse off. I have been biting the bullet (living with parents) the past year and saving. I have no debts, so the rate cut doesn't benefit there. However, my savings are still growing as I'm managing to add more than 80% of my monthly income to my savings each month.

To be honest, the situation is a little perverse. The problem was with people taking too much debt and banks letting people get into too much debt. How can the solution possibly be to get people into more debt, while the rates are low, so they are stuffed again when the rates go higher?

There will be a mini recovery in housing prices over the next few months, as many people now feel their savings aren't benefiting them. However, this will be only first time buyers. There aren't a huge number of them around, and the recovery will be very short lived. Keep in mind that apartments have a VERY limited potential customer base. Generally they are for young career/students, and they have been heavily in debt for too long.

Our whole property market is a sham, at best. For over a decade we didn't build enough houses, which in turn drove house prices up to unrealistic levels, which in turn made short sighted people think they had to jump in, cos it's what everyone else is doing.

We can't change the fundamentals. The facts are simple.

1. Unemployment rising.

2. Unaffordable housing.

3. Weak currency.

4. Populous heavily in debt.

Please please please don't fall for this scam to get you to spend again, as it is indeed a scam. Get yourself out of debt, then build from there. Don't take on any new debts, as that's how we got into this mess.