I Survived the Global Crisis Only to Find It's the Recovery That Hurts: Australia
An unexpected rate cut highlights the worst stretch of growth since the last recession and a likely rise in unemployment
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Glenn Stevens's backflip Tuesday on a declared "period of rate stability'' reflects an acknowledgement that Australia is no longer different to the rest of the world.
Stevens cut rates by a quarter point to a new record low of 2.25% today as his economy is on track to record below-potential growth for the sixth year of the past seven -- expanding less than the 3.3% average of the past 30 years, when Australia began freeing up markets and lowering trade barriers. Unemployment has also remained above 6% for the longest stretch since 2003, when the nation's China-fueled mining boom began.