Australia's central bank cut the official cash rate to a new record low of 1.5 per cent on Tuesday as inflation "remains quite low" despite the local economy continuing to make necessary adjustments.
Reserve Bank of Australia (RBA) Governor Glen Stevens said the subdued growth in labour costs and low cost pressures globally are meaning inflation will remain quite low for some time.
"Taking all these considerations into account, the Board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting," Stevens said in a statement on Tuesday.
The Australian dollar initially fell to 74.92 US cents on the release, from 75.40 US cents just prior, however by 2.50 p.m., traders shrugged off the decision, with the unit trading at 75.26 US cents.
--IANS
ksk
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app