Interest rates have been cut to a new record low by the Reserve Bank of Australia (RBA).
It was announced by the body that the cash rate is being cut from three per cent to 2.75 per cent and the change comes into effect from tomorrow (May 8th).
In a statement, Glenn Stevens revealed growth in Australia has been below trend for the last 12 months and the move to drop interest rates is intended to stimulate the country's economy.
He explained that the board of the RBA "judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving the inflation target".
Mr Stevens added the RBA is expecting inflation to remain at a steady level in the near future.
Earlier in the month, the European Central Bank announced that it is cutting interest rates from 0.75 per cent to 0.5 per cent, which is a new low for Europe.
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