The rate cut “will provide continued stimulus to strengthening housing markets,” Andrew Wilson, Sydney-based senior economist at Australian Property Monitors, said in an e- mailed release. “Lower interest rates and rising home buyer confidence are set to continue to generate house price growth although the performance of local economies remains the key.”

National Australia Bank Ltd. (NAB), Commonwealth Bank and Westpac Banking Corp. (WBC) said they will pass along the full interest-rate cut. Australia & New Zealand Banking Group Ltd. (ANZ) will set rates on May 10.

Australia recorded its slowest core consumer price growth in 14 years in the first quarter, government data showed April 24. The central bank’s preferred measure of inflation eased to 0.3 percent from the prior three months.

“Recent data on prices confirm that inflation is consistent with the target and, if anything, a little lower than expected,” Stevens said today. “The bank’s forecast remains that inflation over the next one to two years will be consistent with the target.”