Interest rates cut in Australia

<p>Australia’s central bank has cut interest rates.</p>

Interest rates have been cut in Australia by the country's central bank.

It was announced by the Reserve Bank of Australia that it has cut its benchmark interest rate to a new record low.

The move has been made by the bank in a bid to stimulate a fresh wave of economic growth, with its key rate cut to 2.5 per cent from 2.75 per cent.

Treasurer Chris Bowen welcomed the move, explaining it is going to be good news for families in Australia who have a mortgage on their home.

But opposition leader Tony Abbott suggested that the cut in interest rates could mean that the country's economy is in more trouble than the government wants to admit.

Earlier in the month, the Bank of England's Monetary Policy Committee announced that it is holding the base rate of interest at a record low for the UK of 0.5 per cent for another month.

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