| Australia cuts rates to record low | The Reserve Bank of Australia has cut its benchmark cash rate to a record low, in a renewed attempt to boost activity outside of the resources sector and soften the impact of a strong domestic currency on trade-exposed industries.
In a move that surprised economists, the RBA opted to reduce its cash rate by 25 basis points to 2.75 per cent, highlighting the persistent strength of the Australian dollar over the past 18 months and subdued demand for credit as the reasons for its move.
"The Board has previously noted that the inflation outlook would afford scope to ease further, should that be necessary to support demand", RBA governor Glenn Stevens said in his post-meeting statement.
http://link.ft.com/r/OZMCDD/SUVV36/LQ05NB/7AOQLK/OFZFNW/LE/h?a1=2013&a2=5&a3=7
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