Economics
Australia Cuts Key Rate to Record Low, Ending Near 3-Year Pause
- Markets and economists see a further cut in the months ahead
- Data tomorrow likely to show economy growing below potential
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Australia cut interest rates for the first time in almost three years to guard against a darkening global backdrop and attempt to revive a slowing economy and tepid inflation at home.
Reserve Bank Governor Philip Lowe made his first adjustment to the cash rate since taking the helm in September 2016, cutting by a quarter-point to 1.25% Tuesday as expected by money markets and economists. They also see the central bank following up with another cut within three months.