Investing.com - The Reserve Bank of Australia lowered its benchmark interest rate to the lowest level since the 2009 global financial crisis in December, citing a weakening global growth outlook, it announced on Tuesday.
In a statement, the RBA said it was cutting its benchmark interest rate to 3% from 3.25%, in line with market expectations.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “The board judged at today's meeting that a further easing in the stance of monetary policy was appropriate now. This will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time."
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD adding 0.26% to trade at 1.0448.
Meanwhile, Asian stock markets were mostly lower, with Australia’s ASX/200 Index dipping 0.6%, Japan’s Nikkei 225 Index easing down 0.3%, while Hong Kong's Hang Seng Index shed 0.1%.
In a statement, the RBA said it was cutting its benchmark interest rate to 3% from 3.25%, in line with market expectations.
In its accompanying rate statement, RBA Governor Glenn Stevens said, “The board judged at today's meeting that a further easing in the stance of monetary policy was appropriate now. This will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time."
Following the decision, the Australian dollar was higher against its U.S. counterpart, with AUD/USD adding 0.26% to trade at 1.0448.
Meanwhile, Asian stock markets were mostly lower, with Australia’s ASX/200 Index dipping 0.6%, Japan’s Nikkei 225 Index easing down 0.3%, while Hong Kong's Hang Seng Index shed 0.1%.