18 Mar 2009

Further cuts in rate expected by RBA

7:07 am on 18 March 2009

The Reserve Bank of Australia has hinted there will be further interest rate cuts after the release of minutes of its last meeting earlier this month.

The RBA left interest rates on hold at 3.25% on 3 March, but the minutes suggest the decision was a close call.

While the board acknowledged a bleak outlook for global growth, it noted previous steep cuts in rates combined with substantial fiscal stimulus had been working to support domestic demand.

Financial markets are betting the RBA will have to cut again given the tide of grim economic news from abroad.