Arab Today, arab today australia cuts interest rate to 425
Last Updated : GMT 18:22:15
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Australia cuts interest rate to 4.25%

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Arab Today, arab today Australia cuts interest rate to 4.25%

Sydney - AFP

Australia\'s central bank cut interest rates to 4.25 percent Tuesday with the global economy continuing to pose risks despite expectations of strong domestic growth in the September quarter. It was the second month in a row the Reserve Bank of Australia has slashed rates by 25 basis points, having cut in November for the first time since April 2009 amid slowing inflation and fears of a major world economic downturn. Economists were split on whether they would move again ahead of a summit of European leaders this week seen as crucial for the future of the eurozone, but the bank said the inflation outlook \"afforded scope for a modest reduction\". \"The board will continue to set policy as needed to foster sustainable growth and low inflation over time,\" RBA governor Glenn Stevens said.

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