Australia cuts interest rates tonewlow
Australia’s central bank has cut the official cash interest rate to a new record low 1.5 percent on Tuesday as inflation “remains quite low” despite the local economy continuing to make the necessary adjustments. Australia has been toying with low interest rates since 2013 as a way of supporting domestic demand and exports. Putting banks in a position to lend has assisted the economy to make the necessary adjustments from mining-led growth. But Reserve Bank of Australia governor Glen Stevens said the subdued growth in labor costs and low cost pressures globally means inflation will remain quite low for some time.