Australia cuts key rate by 1 percentage point

The bank cut the rate to 6%, effective Oct. 8, Governor Glenn Stevens said in a statement.

"Financing is likely to be difficult around the world for some time ahead," Stevens said. "The recent deterioration in prospects for global growth, together with much more difficult market conditions even for creditworthy borrowers, now present the risk that demand and output could be significantly weaker than earlier expected."

Australia's S&P/ASX 200 Index rose 2.3% to 4614.9, reversing an earlier decline.

By Jonathan Underhill

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

BNP Paribas accredited as Derivatives Market Maker
GXH - Response to media report
April 14th Morning Report
SML - Synlait responds to The a2 Milk Company announcement
KPG - Annual meeting date, closing date for director nominations
April 13th Morning Report
CVT - Update on banking facilities
April 9th Morning Report
April 8th Morning Report
ATM - In principle agreement to settle shareholder class action