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...

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