The Reserve Bank of Australia has cut official cash rates to a new record low of 1.25 per cent, injecting stimulus into a slowing economy as it looks to turn around sluggish employment, wages and inflation.

Senior economics writer Jess Irvine and the Sydney Morning Herald's Economics Editor Ross Gittins react to the first time the RBA has used its monetary policy lever in almost three years - the longest period of interest rate stability in Australian history.

Host: Jess Irvine - Senior economics writer, The Sydney Morning Herald and The AgeGuest: Ross Gittins - Economics Editor, The Sydney Morning Herald