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Australia’s central bank has cut its benchmark interest rate by a quarter of a percentage point.

It is now at the lowest level in three years – at 3.25 percent.

The move to lower the cost of borrowing and stimulate the resource-rich economy comes in response to a slowdown in China – which is the country’s biggest export market – and a high rate of exchange for Australia’s currency.

The Australian dollar immediately fell against the US dollar.

Economists expect a further cut to 3.0 percent by the end of the year.

“I think they have done the right thing,” said Shane Oliver, head of investment strategy at AMP Capital Investors. “The global economy is looking a bit shaky.”

“We are looking to another 0.25 percent cut in November, and then another one in February or March next year, taking the cash rate to 2.75 percent.”

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