Australian interest rates cut

Fears over the global economic slowdown yesterday pushed the Reserve Bank of Australia to cut interest rates for the first time since April 2009. The benchmark interest rate was cut from 4.75 per cent to 4.5 per cent. Governor Glenn Stevens pointed to “subdued demand conditions” and also explained that the Australian dollar’s strength helped contain inflation. The Bank expects inflation to fall back to its two to three per cent target in 2012 and 2013, allowing it some room to loosen monetary policy now.