RBA's Cut Reflects Lack of Confidence in Europe Steps: Economy
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Australia executed its first back-to-back interest-rate cut since 2009 and the Asian Development Bank cited escalating risks to its growth outlook, signaling lack of confidence in the region that Europe’s leaders have done enough to stem the sovereign-debt crisis.
Reserve Bank of Australia Governor Glenn Stevens lowered the overnight cash-rate target by a quarter percentage point, to 4.25 percent, confounding the forecasts of 12 of 25 economists surveyed by Bloomberg News. Philippine and Indonesian officials in the past day have said their central banks are also prepared to reduce borrowing costs.