RBA Cuts Interest Rates to 45 Year Low
February 3, 2009
In a largely expected move, the Reserve Bank of Australia (RBA) cut interest rates by 100bps to 3.25%, the lowest level in 45 years. The RBA cited “significant deterioration in world economic conditions” have affected Australia and has had a “significant dampening effect on confidence”. Additionally, the government announced a second stimulus package of A$42 in infrastructure spending and cash support for low income families. The Australian dollar strengthened over 3% against the US dollar following the announcements.