Sydney’s primary stock index closes down on interest rate cut
City Index December 4, 2012 3:15 PM
<p>Sydney’s main primary stock index has closed lower as its central bank cuts interest rates again.</p>
Sydney's All Ordinaries Index has closed lower in trading today (December 4th) on news the Australian central bank has decided to cut its main interest rate by 25 basis points to three per cent.
The Reserve Bank of Australia's decision was made at its monthly policy meeting earlier and aims to counter a slowdown in its once burgeoning mining sector.
This is the second rate cut since October of this year.
Australia has also been grappling with its strong currency and the rate cut is likely to weaken this, which could help boost the nation's export market.
Central bank governor Glen Stevens explained the Australian dollar remains "higher than might have been expected" given low export prices and the weak global outlook.
Furthermore, the country's cost of borrowing is now at the same level it was during the global financial crisis of 2009.
The Sydney All Ordinaries Index finished down by 0.6 per cent at an index value of 4511.8 points.
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