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03.01.2015 09:35

RBA cuts interest rates by 25 basis points to a record low of 2.25%

The Reserve Bank of Australia cut benchmark interest rates unexpectedly to a record low to 2.25% by 25 basis points at its policy meeting in order to support the economy and to keep the aussie low. Reserve Bank of Australia Governor Glenn Stevens said in a statement in a statement that lower interest rates are expected to add some further support to demand, help to achieve sustainable growth and to assure that inflation is consistent with the target. At the end of 2014 the RBA had kept its outlook on interest rates stable but now lowered the interest rates together with other central banks as falling oil prices drive inflation lower.

The Australian dollar slumped more than 1% to a six-year low at USD0.7624.

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