RBA cuts return

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The RBA dropped the cash rate to 3.25% for October, ending three months of intense speculation over when, and how, it would act. 

Governor Glenn Stevens said the decision could help kick-start an increasingly flat economic climate in Australia. 

"Credit growth has softened of late and the exchange rate has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook. 

"At today's meeting, the Board judged that, on the back of international developments, the growth outlook for next year looked a little weaker, while inflation was expected to be consistent with the target. 

"The Board therefore decided that it was appropriate for the stance of monetary policy to be a little more accommodative," he said.

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