By Sarah Turner
SYDNEY (MarketWatch) -- The minutes of the Reserve Bank of Australia's latest interest-rate setting meeting were published Tuesday and showed that members were concerned that Europe's situation had notably deteriorated. "The news on Europe...had been notably weaker and it remained unclear as to how the current situation would be resolved," according to the minutes. "It seemed highly likely that the sovereign credit and banking problems would weigh heavily on economic activity there over the period ahead, and there was a non-trivial possibility of a very sharp contraction," according to the minutes. The RBA decided to cut its key cash rate at its last interest rate meeting by a quarter point to the current level of 4.25%.
