Money & Banking

Australia cuts interest rates further

PTI Sydney | Updated on July 02, 2019 Published on July 02, 2019

An ibis bird perches next to the Reserve Bank of Australia headquarters in central Sydney, Australia (file photo)   -  REUTERS

The bank is battling to extend a record 28-year-run without a recession against increasing headwinds -- including low wages and a housing slump.

Australia’s central bank on Tuesday lowered the cost of borrowing for the second-straight month, bringing interest rates to a new historic low.

The Reserve Bank of Australia announced it had cut rates by another 25 basis points to one percent after a regular policy meeting.

Read also: Australia cuts rates to historic low of 1.5% to head off deflation

The bank is battling to extend a record 28-year-run without a recession against increasing headwinds -- including low wages and a housing slump.

Last month it cut rates for the first time in three years, but with growing concern about the economy RBA officials believed further action was warranted.

“This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term target,” governor Philip Lowe said in a statement.

The move comes as central banks around the world shift to a more accommodative footing as the global economy stutters in the face of trade uncertainty.

Published on July 02, 2019
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