By www.CentralBankNews.info Australia’s central bank’ cut its benchmark cash rate by 25 basis points to 2.75 percent as lower-than-expected inflation had given it scope to cut rates to “encourage sustainable growth in the economy.”
The Reserve Bank of Australia (RBA), which embarked on an easing cycle in October 2011 and last cut its rate in November 2012, said economic growth had been a little below trend in the second half of last year and this appears to have continued into 2013 with employment growing slower than the labor force so the jobless rate had increased slightly.
“The exchange rate, on the other hand, has been little changed at historically high level over the past 18 months, which is unusual given the decline in export prices and interest rates during that time,” the RBA said, adding demand for credit was currently “relatively subdued.”
