MW:Australia cuts interest rates; Aussie dollar falls
By Michael Kitchen
LOS ANGELES (MarketWatch) -- The Reserve Bank of Australia lowered rates on Tuesday, surprising economists who had mostly expected no action, even as markets priced in a roughly 50% chance of a rate cut. The RBA trimmed the policy cash rate by a quarter-point to 2.75%, with Gov. Glenn Stevens citing "below trend" economic growth and inflation "consistent with the target and, if anything, a little lower than expected." The Australian dollar AUDUSD -0.59% fell after the announcement to buy $1.0187, down from $1.0237 just moments ahead of the move. Stocks moved off lows, as the benchmark S&P/ASX 200 AU:XJO -0.19% sharply pared losses, trading 0.2% lower from a deficit of 0.5% before the decision.
