Australia cuts interest rates further
Reserve Bank of Australia officials are trying to extend a 28-year run without recession in the country’s economy (PETER PARKS)
Sydney (AFP) – Australia’s central bank on Tuesday lowered the cost of borrowing for the second-straight month, bringing interest rates to a new historic low.
The Reserve Bank of Australia announced it had cut rates by another 25 basis points to one percent after a regular policy meeting.
The bank is battling to extend a record 28-year-run without a recession against increasing headwinds — including low wages and a housing slump.
Last month it cut rates for the first time in three years, but with growing concern about the economy RBA officials believed further action was warranted.
“This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term target,” governor Philip Lowe said in a statement.
The move comes as central banks around the world shift to a more accommodative footing as the global economy stutters in the face of trade uncertainty.
Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.