RBA cuts interest rates for second time this year

Sydney

AUSTRALIA'S central bank cut interest rates for the second time this year on Tuesday, seeking to buttress the economy against sliding mining investment while heading off a harmful increase in the local dollar.

The currency did initially drop after the Reserve Bank of Australia (RBA) trimmed its cash rate a quarter point to a fresh all-time trough of 2.0 per cent. Yet it soon rallied as investors wondered whether the easing cycle might now be over.