Australia cuts interest rate to 3%

Australia's central bank has cut its benchmark interest rate to 3% in order to counter a slowdown in its mining sector.

The rate was cut by 25 bps after the Reserve Bank of Australia's monthly policy meeting, and is the the second cut since October. The country has been hit by the slowdown in China, and has also been struggling with a stubbornly strong Australian dollar. As a result it has moved to stimulate the economy, with the cost of borrowing now at the same level as it was during the height of the global financial crisis in 2009. The Australian dollar was little changed on the news, while the main Sydney stock exchange was down slightly. Economists say weaker exports and government spending...