Australia central bank cuts rate record low

Australia's central bank cut its benchmark interest rate by a quarter of a percentage point to a record low 2.5 percent Tuesday because of slower growth and weakening commodity prices. The Reserve Bank of Australia's decision at a monthly board meeting in the first week of a federal election campaign was expected by economists, AP reported. The bank last cut the Official Cash Rate, which is a benchmark for commercial lending rates, by a quarter point in May, following four cuts in 2012. In a statement, the bank's governor Glenn Stevens said economic growth was below the long-term trend level of 3 percent as the economy adjusts to lower levels of mining investment, but there was a 'reasonable prospect' of it picking up in 2014.