RBA Cuts Key Rate, Citing Risk Europe to Slow Global Growth

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Australia’s central bank reduced its benchmark interest rate today for a second straight month as Europe’s fiscal crisis threatens to slow the nation’s commodity exports, sending its currency lower.

Reserve Bank Governor Glenn Stevens and his board cut the overnight cash-rate target by a quarter percentage point to 4.25 percent, saying in a statement that “financing conditions have become much more difficult, especially in Europe.”