The RBA has confirmed, what was widely expected, a cut to the official cash rate – it is the third cut since June.

Australia's official cash rate is now at a record low of 0.75%

The decision follows muted economic performance across key metrics, including employment, inflation and wage growth.

The cut comes despite some strength returning to the property market.

According to Tim Lawless, head of research at CoreLogic, the combination of lower rates and a “subtle loosening in credit policy” have driven a property value recovery of 1.7% of the 8.4% peak to trough decline recorded to date.

The CoreLogic Home Value Index of national home prices rose by 0.9% over the month of September, the biggest increase since March 2017. Capital city home prices rose by 1.1%, the biggest lift in almost three years. Regional home prices increased by 0.1% over the month.

Lawless said the rebound in housing conditions should help to support an improvement in economic conditions as higher housing prices translate to "a wealthier and more confident household sector who will hopefully be inclined to spend more". Stronger housing conditions should also support the residential construction sector where approvals dropped through the housing downturn.

However, he issued caution around total household debt levels.

"Although the housing recovery is likely to add to Australia’s economic momentum, it comes amidst record levels of household debt and ongoing affordability challenges. There is a risk that lower interest rates could fuel a further rise in household indebtedness as housing credit picks up and investors once again become more active, while higher housing prices are likely to curb participation from first home buyers despite the lower cost of debt," he said.