Reserve Bank of Australia cuts to 1.75% on weak inflation, kiwi dollar gains vs Aussie

Tue, 03 May 2016

By Edwin Mitson May 3 (BusinessDesk) - The Reserve Bank of Australia has cut its cash rate by 25 basis points 1.75 percent, sending the kiwi sharply higher against the Australian dollar. Governor Glenn Stevens explained the move by citing concerns that inflation was weaker than expected. "Inflation has been quite low for some time and recent data were unexpectedly low," he said. "While the quarterly data contain some temporary factors, these results, together with ongoing very subdued growth in labour costs and very low cost pressures...

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