Reserve Bank of Australia cuts cash rate

int-rateThe Reserve Bank of Australia on Tuesday (3/5/2016) cut the cash rate to a record low of 1.75 per cent in a bid to head off falling prices and an economic downturn.

The cut, the first in a year, came less than a week after a shock drop in core inflation to well below the central bank’s 2 per cent to 3 per cent target band.