RBA cuts interest rates

The Reserve Bank of Australia (RBA) has cut interest rates by a further 100 basis points, taking it down to 4.25 per cent, effective 3 December 2008.

The cut signifies the fourth month in a row that the RBA has lowered interest rates, as the central bank tries to shield the Australian economy from sliding into recession.

According to RBA governor Glenn Stevens, the board will continue to monitor developments in the economy and adjust rates accordingly in order to “promote sustainable growth consistent with achieving the 2-3 per cent inflation target over time.”