Australia central bank cuts interest rate to hold up economy
SYDNEY (Reuters) - Australia's central bank cut interest rates by a quarter point to a three-year trough of 3.25 per cent today as a slowdown in China, falling export prices and a high currency all dimmed the economic outlook at home.
The Australian dollar fell half of a US cent as the market had not been fully priced for a move, with many analysts favouring November as the more likely window for a cut.
"The Board judged that, on the back of international developments, the growth outlook for next year looked a little weaker," Reserve Bank of Australia Governor Glenn Stevens said after the central bank's monthly policy meeting.
"The Board therefore decided that it was appropriate for the stance of monetary policy to be a little more accommodative." The latest move brings the cuts delivered since last November to 150 basis points.