The Reserve Bank Board cut the official cash rate by 25 basis points (quarter of a percentage point) to 3.50 per cent.
The cash rate is at the lowest level in 2½ years (December 2009). The next RBA Board meeting is on July 3 2012.
The Reserve Bank summed up the decision quite neatly. “with modest domestic growth and a weaker and more uncertain international environment, the outlook for inflation afforded scope for a more accommodative stance of monetary policy.” To read CommSec’s full report, click here.
