Australia cuts rates to record low

Posted by Financial Times

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The Reserve Bank of Australia has cut its official rate to a record low and said it was willing to ease policy further to support growth as the country’s resource investment boom comes to an end.

The central bank on Tuesday lowered its benchmark cash rate by 25 basis points to 2.50 per cent in an effort to stimulate activity in non-mining parts of the economy.
The decision to lower the cash rate shows policy makers are concerned that the non-mining parts of the economy need more support even though the RBA has lowered the cash rate by 2.25 percentage points since November 2011. Figures published by the Australian Bureau of Statistics earlier this week showed no growth in retail sales in the June quarter.