Market analyst Kyle Rodda told news.com.au that a rate drop today was "expected".
He said the cut would lower mortgage rates and support household spending by lowering the cost of debt. "It should also push the banks to lend more and should also stoke an increase in investment," Rodda said.
Rodda said the cut means borrowing will become "that little bit easier", while there'll be "a bit of extra money in the pocket from lower interest repayments".
"For a business, finance ought to become more available, while on a grander scale, it should make investing in certain projects more viable," Rodda explained.
CreditorWatch chief economist Harley Dale agreed that reducing the cash rate was a "widely expected move".
"The RBA is now out of ammunition in terms of the official cash rate," Dale told news.com.au. "Any further support the Australian economy requires will have to come from fiscal policy and quantitative easing – but then fiscal policy has been doing most of the heavy lifting in 2020.
"While it can be argued that this latest interest rate cut will do little to stimulate demand, it will likely feed through to lower fixed rate mortgages. That can provide a powerful charge to the economic recovery," he added.
Dale said the interest rate cut "will have a positive impact on the Australian economy".
"A 15 basis point cut probably won't do much to stimulate demand overall, but if at least some of the cut is passed on to mortgage rates, then it will help boost a residential property market that already appears to be in recovery mode," he told news.com.au.
"The housing market has a broad reach into other areas of the Australian economy and so the boost a cut would provide should not be underestimated," he added.
A recent Finder study shows that 29 out of 43 economic experts, or almost 70 per cent, predicted a cash rate cut today.
Graham Cooke, insights manager at Finder, said that the November rate cut would have been seen as "unprecedented" only a few months ago.
"For the first time since 2011, the RBA has declared a Cup Day cut despite some skepticism from experts around the effectiveness of further monetary stimulus measures," Cooke said.
"But significant considerations like the strength of the Australian dollar and a lagging Victorian economy have supported the case for further easing.
"I suspect the horse races weren't the only thing punters were betting on today," Cooke said.
According to Dr Andrew Wilson of My Housing Market, Australia's economy is turning a corner.
"Recovery has proved more positive than expectations, and will continue to surprise on the upside with the reopening of borders fuelling a tourism and hospitality surge," he said.
John Rolfe of Elders Home Loans agrees, stating that "the underlying indicators are strong for Australia to lead the world in a recovery".
Several economists predicted the post-Budget cut.
"Interest rates were kept on hold last month largely due to the timing of the Federal Budget," Peter Boehm of CLSA Premium said.
"Now that this has been announced, and states are showing reasonable signs of economic recovery – other than Victoria – further easing of monetary policy will likely be supported by the RBA," Boehm said.
But not all experts shared this sentiment of a rate cut. Angela Jackson of Equity Economics, one of 14 experts that expected a hold this month, was of the opinion the RBA would take a "wait and see" approach to the economy before intervening further, especially in light of Melbourne coming out of lockdown.
"While it may be concerned with lack of momentum in employment data, they will wait to see if Victoria reopening and state borders opening helps spur the recovery before moving rates down further," she had said earlier.
Cooke said recent comments by RBA deputy governor Guy Debelle indicate that Australia may already be heading for economic growth after six months of recession.
A lower cash rate means borrowing money is cheaper, which is good news for people with mortgages. The low rates this year are also spurring homebuyers to enter the property market.
An average mortgage holder could save A$15,000 ($15,918) if banks pass on the cut.
He added that a rate cut could mean big savings from lenders who pass on the reduction to customers.
"For mortgage holders, another rate reduction will be welcome news – even a cut of 15 basis points could save the average home loan customer around A$500 a year in interest," he said.
"Now is not the time for homeowners to be complacent. If the rate cut goes ahead and your lender doesn't pass on the savings, it's time to refinance to a more competitive deal."
If a homeowner with the average mortgage of around A$480,000 were to drop from the current average variable rate of 3.99 per cent to 3.84 per cent, they would pocket an extra A$495 per year. Over the course of a 30-year loan, this would save them almost A$15,000 in interest.
