Reserve Bank of Australia cuts key rate to 2.25% citing weak domestic demand

Tue, 03 Feb 2015

By Jonathan Underhill Feb. 3 (BusinessDesk) - The Reserve Bank of Australia cut its cash rate to a record low, saying weak domestic demand and tame inflation in the face of falling crude oil prices will keep output growth below trend for longer. The Australian dollar fell to its lowest in almost six years. The RBA cut the cash rate to 2.25 percent, the first decrease since June 2013. Heading into today's announcement, traders had put on a 63 percent probability of a rate cut and were betting on almost 60 basis points of cuts over the next...

Subscribe to BusinessDesk

Stay informed on business, government and financial developments across New Zealand.

Stay informed on business, government and financial developments across New Zealand.
Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

You can cancel anytime with two clicks, an email or a phone call.
Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].name) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market Close

NZ sharemarket has big day: up 1.23%

Big boys go bullish ... for now.

Graham Skellern 6:10pm

World

Australia unveils tax cuts in pre-election budget

Jim Chalmers said Australia would fortify its economy against damaging US tariffs.

AFP 3:52pm

Australia unveils tax cuts in pre-election budget

Finance

Grenon seeks to end ‘futile’ NZME board stoush

It's time for the current board to fold 'em, says coup orchestrator.

Pattrick Smellie 2:00pm

Grenon seeks to end ‘futile’ NZME board stoush

Sponsored

“Extraordinary” uptake for Auckland’s new growth hub

63% of lots at Spedding Road precinct sold ahead of completion.

Spedding Road

Sponsored

Research shows AI-based attacks causing concern and senior leaders overestimating cybersecurity readiness

Research highlights from Datacom’s State of Cybersecurity Index show AI-based attacks are top of mind and senior leaders might be overestimating their organisations’ readiness to recover from cyber incidents.

Datacom