Australia central bank cuts rates to record low of 2.75%
CANBERRA, Australia (AP) – Australia’s central bank cut its key interest rate by a quarter percentage point to a record low 2.75 percent Tuesday in an effort to boost economic growth as a mining boom cools and the strong Australian dollar erodes business profits.
Reserve Bank of Australia governor Glenn Stevens said in a statement following the bank’s monthly board meeting that economic growth was below trend in the second half of 2012 and continued to be that way in 2013. Australia’s long-term trend growth rate is around 3.25 per cent a year.
“Employment has continued to grow but more slowly than the labour force, so that the rate of unemployment has increased a little, though it remains relatively low,” he said.
“The global economy is likely to record growth a little below trend this year, before picking up next year,” he said.