Australian Central Bank cuts key rate to record low

06.08.2013 17:10
Australian Central Bank cuts key rate to record low

YEREVAN, August 6. / ARKA /. The Australian central bank on Tuesday cut rates for the eighth time in less than two years in a bid to improve sluggish growth as a boom in mining investment over the past decade comes to an end, Reuters reported.

The Reserve Bank of Australia lowered its benchmark cash rate by a quarter of a percentage point to a record low of 2.5 percent, bringing the total cuts since November 2011 to 2.25 percentage points.

Despite cooling growth in China, which is the main market for Australia’s mineral riches, resource exports are continuing to grow, and are expected to continue to do so as projects that are now in the pipeline begin operation.

In a statement accompanying the rate decision Tuesday, the central bank governor, Glenn Stevens, hinted at the divergent trends, saying that although there had recently been “signs of increased demand for finance by households,” the pace of borrowing had remained “relatively subdued.” -0-


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