RBA slashes cash rate to 2.75 percent

The Reserve Bank (RBA) today announced a cut of 25 basis points to lower the cash rate to 2.75 percent.

The Board judged that a cut to the cash rate would encourage sustainable growth in the economy.

“Financial conditions internationally continue to be very accommodative, with risk spreads reduced, funding conditions for most financial institutions improved and borrowing costs for well-rated corporates and sovereigns exceptionally low,” stated Glenn Stevens, Governor of the RBA.

Stevens added that with a peak in the level of investment in the resources sector expected to occur this year, there is a chance for other growth in areas such as consumption and dwelling investment.

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