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.”
Copyright © 2014 euronewsMore about:
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2Now is ‘right time’ for Catalonia independence vote, says Mas | euronews, world news
- 3Vatican rocked by another paedophilia scandal | euronews, world news
- 4Two container ships collide on Egypt’s Suez Canal | euronews, no comment
- 5British Muslims’ message to ISIL: Not in my name! | euronews, world news
- 6Sweden becomes first European nation to recognise Palestine | euronews, world news
- 7Algeria: ISIL offshoot releases video threatening French hostage Hervé Gourdel | euronews, world news
- 8Emma Watson threatened with naked photos leak after UN equality speech | euronews, world news
- 9How nasheeds became the soundtrack of jihad | euronews, world news
- 10International tv news | euronews: European and International tv news bulletin
- 11Iceland volcano ‘pollutes Paris’ | euronews, world news
- 12Ebola: Six new suspected cases in Spain | euronews, world news
- 13European Union News | euronews: latest breaking news and headlines about European Union
- 14Learning through “serious games” | euronews, learning world
- 15euronews speaks to Ban Ki-moon ahead of key UN and climate change talks | euronews, the global conversation
- 16Iraq: Baghdad rally held against US ‘occupiers’ | euronews, world news
- 17Mike Tyson: ‘You learn humbleness when you get older in life’ | euronews, the global conversation
- 18US delivers technical aid to Ukraine but warns over security | euronews, world news
- 19euronews apps : iPhone, iPad, Android, Windows Phone 8, Windows 8, Nokia S40, Nokia Asha, Smart TV and Google Glass
- 20Global warming to ‘cause 250,000 extra deaths a year’ | euronews, world news
Wires > Business
- 15:02 CET Daimler eyes stake in motorbike maker MV Agusta – source
- 15:00 CET Exclusive: ECB looking at corporate bond buys, could act as soon…
- 14:58 CET Lockheed Martin UK says wins $1 billion contract for new tanks
- 14:45 CET Britain closer to sale of RBS shares
- 14:39 CET EU fines JPMorgan, UBS, Credit Suisse total 94 million euros
- 14:11 CET Spain’s credit card scandal sparks corruption backlash
- 14:07 CET Apple seen riding higher on strong iPhone demand, iPad rebound
- 14:00 CET Lufthansa pilots threaten more strikes as long haul hit