Fed: RBA cuts key rate by another 100 basis points
03 Feb 2009 2:34 PM
CANBERRA, Feb 3 AAP - The Reserve Bank of Australia (RBA) has slashed its official cash rate by a further 100 basis points following Tuesday's board meeting.
The cash rate is now 3.25 per cent, the lowest level in 45 years.
Economists had expected a cut of at least 75 basis points given the rapid deterioration in the global economy since the central bank last cut the rate in December.
The RBA has cut the rate by a massive 400 basis points since September last year in attempts to protect the economy from sinking into recession.
Earlier, the federal government said it expected economic growth to be just 1.0 per cent in 2008-09, slowing to a mere 0.75 per cent in 2009/10.
The is a marked downgrade from the respective forecasts of 2.0 per cent and 2.25 per cent made in November.
