Australia cuts main interest rate to 3.25 percent

  • The Reserve Bank of Australia (RBA) made an unexpected cut to its official interest rate on Monday, saying the slowdown in global growth was hindering the country's economic outlook.

    The bank cut its key rate by a quarter percent to 3.25 percent, the lowest rate in three years. It is the first cut since June.

    "The Board judged that, on the back of international developments, the growth outlook for next year looked a little weaker, while inflation was expected to be consistent with the target," said RBA Governor Glenn Steven in a statement.

    "The Board therefore decided that it was appropriate for the stance of monetary policy to be a little more accommodative."