Australia goes on the defensive with record-low interest rate

Lower home prices and consumption, along with China risk, threaten growth streak

20190604N Australia housing 2

"For Sale" signs dot properties around the Sydney area as housing prices slumped in 2018. (Photo by Fumi Matsumoto)

FUMI MATSUMOTO, Nikkei staff writer

SYDNEY -- Australia's central bank has reduced a key interest rate to an all-time low, looking to counteract headwinds that put the country's unprecedented run of economic growth at risk.

The Reserve Bank of Australia on Tuesday lowered the policy rate by 25 basis points to 1.25%, the first rate cut since August 2016.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.