Australia cuts key rate to record low, ending nearthree-year pause


  • Business
  • Wednesday, 05 Jun 2019

The Reserve Bank of Australia (RBA) in Sydney, Australia, 01 September 2015. The RBA announced it will keep interest rates on hold at an historic low of two percent. The Australian bond market has been weighed down by a spike in oil prices, nervousness about China's pace of growth and fears of a September US rate rise. EPA

SYDNEY: Australia cut interest rates for the first time in almost three years to guard against a darkening global backdrop and attempt to drive increased hiring and faster inflation.

Reserve Bank of Australia (RBA) governor Philip Lowe made his first adjustment to the cash rate since taking the helm in September 2016, cutting by a quarter-point to 1.25% yesterday as expected by money markets and economists. They also see the central bank following up with another cut within three months.

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