Interest Rate News

December 5, 2012/News

The Reserve Bank has cut the official interest rate yesterday by 25 basis points to 3%, in a move widely anticipated by economists as a cautionary move by the central bank to ward off a struggling economy.

The announcement comes after a slew of negative data, including poor job ads rates and retail sales.

In a statement, governor Glenn Stevens said that with global growth forecast to below average for some time, and with “dampened” growth in Asia, it was a good time to adjust rates.