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Australia’s central bank cuts rates amid virus fears

AUDUSD News by Newsroom on 00:47 March 03, 2020 EST
The RBA, Australia’s central bank has cut interest rates to record lows on Tuesday in what is expected to be the first in a spate of policy stimulus around the world to fight the economic fallout from the coronavirus.

The Reserve Bank of Australia cut its benchmark rate by 25 bps to 0.5% at today’s meeting. It was a mild surprise, with only 50% of polled economists expecting the cut. In the accompanying statement, the Bank said the outbreak of CoVid-19 is having a significant impact on the economy and has clouded the near term outlook for the global economy. It seems this rate cut may not be the last as the RBA also said it was prepared to ease monetary policy further, if the need arises.