RBA rate cut watch

THE Reserve Bank will keep a close watch on China’s stock markets, the Greek debt crisis and soft local business investment to see if further rate cuts are needed. The RBA cut the cash rate to a historic low of 2 per cent in May and has left it there at its June and July meetings. In the minutes of the July meeting, released yesterday, the central bank said international and local economic news would play a part in future rate decisions. It said growth in Australia’s major trading partners was around average.