SYDNEY, June 4 (Xinhua) -- The Reserve Bank of Australia (RBA) has cut the official interest rate from 1.5 percent to a historic low of 1.25 percent after remaining on hold since August 2016.
RBA governor Philip Lowe announced the move in a statement shortly following the bank's monthly policy meeting on Tuesday.
"Today's decision to lower the cash rate will help make further inroads into the spare capacity in the economy," Lowe said.
"It will assist with faster progress in reducing unemployment and achieve more assured progress towards the inflation target."
Markets and analysts were overwhelmingly expecting the move and some observers have signalled the potential for another rate cut before the end of the year.
Supporting that assessment, Lowe also said that the RBA will, "continue to monitor developments in the labour market closely and adjust monetary policy to support sustainable growth in the economy and the achievement of the inflation target over time."
