Australia cuts interest rates to record low

BBC News - Feb 03, 2015

The Reserve Bank of Australia (RBA) has cut its key interest rate by 25 basis points to an all-time low of 2.25%.

The cut was the first from the central bank in 18 months and was widely expected by financial markets.

In reaction to the move, the benchmark S&P/ASX 200 hit a seven-year high, up 1.3%, while the Australian dollar slumped to a six-year low of $0.7650.

The RBA is the latest central bank to loosen monetary policy to boost growth amid falling oil and commodity prices.

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