RBA Minutes: Further Cut Possible

The Reserve Bank of Australia (RBA) left open the possibility it might cut interest rates further, minutes from its May 5 meeting showed, triggering a slump in the Australian dollar on Tuesday.

In the minutes from the meeting that saw the RBA cut rates to a record low of 2 percent, the central bank acknowledged that board members had agreed not to give guidance on future policy action at that time.

But this does not limit its ability to adjust policy again at future meetings.  The Australia dollar fell to a session low of $0.7954 before rebounding to $0.7991.