RBA Cuts Official Cash Rate to 2%

The Reserve Bank of Australia (RBA) on Tuesday cut interest rates for the second time this year, taking the benchmark lending rate to a new record low of 2 percent.

The decision to reduce rates by 25 basis points was widely expected, and comes even as the economy is showing signs of improvement and as the housing market continues to heat up.

The RBA’s last cut came in February, its first move in 18 months, following an easing spree by global central banks to battle deflation amid a fall in oil prices.