Australia Trims Rate to Ward Off Global Troubles

05-Jun (NY Times) — The Australian central bank cut its benchmark interest rate for a second consecutive month Tuesday in a bid to shore up confidence at home, as finance chiefs of advanced economies around the world prepared to hold emergency talks on the euro zone debt crisis.

Citing a weaker outlook abroad and only modest domestic growth, the Reserve Bank of Australia cut the rate 0.25 percentage point to 3.5 percent.

The Australian dollar showed little reaction because the decision had been largely expected, although some investors had hoped for a bigger cut, given the darkening global outlook.

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