Australian Central Bank gave direction to stimulate the economy after earlier today lowered interest rates by 0.25% to 2.25%, a record low. After news of the Australian dollar struck 6-year lows to $ 0.7650 and a 2% decline against the yen to 89.72 yen.
In a statement after the news, the bank said that growth remains “below expectations”, which forced board members to vote for the reduction of the basic interest rate.
“What is evident in the statement of RBA is the change of mood. More recently, in mid-December, the head of the bank said that declines in interest rates will not see, but now that it happened, “said by HSBC.
RBA follow in the footsteps of several central banks, including the Swiss, that of Denmark, Canada, India and Singapore, which lowered interest rates in recent weeks to increase economic performance, due to deflationary pressures in recent months.
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