Australia cuts rates to record low to counter disinflation, spur jobs

Sydney

AUSTRALIA'S central bank cut interest rates to a fresh record low as it moves to counter disinflation and support a labour market hampered by high levels of part-time work and underemployment.

Reserve Bank of Australia (RBA) governor Glenn Stevens and his board lowered the cash rate by 25 basis points to 1.5 per cent on Tuesday, as expected, saying "inflation remains quite low". "Given very subdued growth in labour costs and low cost pressures elsewhere in the world, this is expected to remain the case for some time," the RBA said.