RBA cuts cash rate

The RBA reduced the cash rate by 25 basis points today to just 3 per cent – the lowest level in almost 50 years.

Though the central bank noted that there had already been significant monetary and fiscal policy stimulus, it judged that there was scope for a further “modest” adjustment in light of the continued global contraction.

“The stance of monetary policy, together with the substantial fiscal initiatives, will provide significant support to domestic demand over the period ahead.”