Aus­tralia cuts in­ter­est rates tonewlow

China Daily (USA) - - BUSINESS -

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.

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