RBA slashes interest rates
Wednesday, 8 October 2008
SYDNEY, Oct 7 (AFP): Australia's central bank slashed interest rates by one percentage point today amid fears of a global slowdown sparked by the US-based financial crisis.
The Reserve Bank of Australia (RBA) reduced its official cash rate from 7.0 per cent to 6.0 per cent, just a month after a 25 basis point cut marked the first downward movement in more than six years.
The cut was much bigger than expected by economists, who had tipped rates to drop by 25 or 50 basis points, and saw an immediate jump in share prices on the Australian stock market.
"At its meeting today, the Board decided to lower the cash rate by 100 basis points to 6.0 per cent, effective October 8 2008," the RBA said in a statement.
The Reserve Bank of Australia (RBA) reduced its official cash rate from 7.0 per cent to 6.0 per cent, just a month after a 25 basis point cut marked the first downward movement in more than six years.
The cut was much bigger than expected by economists, who had tipped rates to drop by 25 or 50 basis points, and saw an immediate jump in share prices on the Australian stock market.
"At its meeting today, the Board decided to lower the cash rate by 100 basis points to 6.0 per cent, effective October 8 2008," the RBA said in a statement.