Australia’s central bank on Tuesday lowered the cost of borrowing, slashing interest rates for the third time this year amid fears about the flagging domestic economy.
The Reserve Bank of Australia announced it had cut rates by another 25 basis points to 0.75 percent, a decision that brings the country’s interest rates to a new historic low.
The move is part of efforts to extend a record 28-year run without a recession, in the face of increasing economic headwinds that include stagnant employment levels, low wage growth and high household debt.
Resource-rich Australia dodged the worst of the financial crisis but the economy recently recorded its weakest annual growth in a decade, expanding just 1.4 percent in the year to June.
AFP
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