This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Australian Central Bank Cuts Rate To Record Low

Australian Retailers Association executive director Russell Zimmerman said the central bank was stepping in to "save the furniture" amid a lack of economic leadership.

"The RBA have provided some relief to Australian retailers, although it is concerning that this cut has come on the back of flat retail sales, predictions of rising unemployment and falling consumer and business confidence," he said in a statement.

The Australian Chamber of Commerce and Industry welcomed the rate cut as providing much-needed relief for struggling businesses.

But the government could not rely on the central bank alone to bolster the economy as it adjusts to the end of the mining boom, the chamber's chief executive Peter Anderson said.

"Clearly other areas of economic management are falling well short of the mark and dragging on confidence," Anderson said in a statement.

"That includes not delivering on budget undertakings, poorly targeted spending, and a series of tax increases," he said.

The conservative opposition seized on the rate cut as an indictment of the economic management of the center-left Labor Party government, which has forecast deepening deficits due to dwindling company tax revenue. Labor has ruled since 2007 and hopes for a third three-year term at elections on Sept. 7.

Opposition treasury spokesman Joe Hockey said interest rates were now even lower than during the global recession in 2009 when Prime Minister Kevin Rudd described a 3 percent central bank rate as an "emergency level."

"The Reserve Bank has cut interest rates to record low levels because the economy is struggling under Kevin Rudd," Hockey told reporters.

"Business and consumer confidence in the United States is in better shape than business and consumer confidence in Australia and one of the key reasons for this is that Australians are worried about their jobs," he said.

The government has defended it economic credentials, boasting the Australia is one of only eight countries with a triple-A credit rating from all three major ratings agencies. Australian government debt remains low compared with most Western countries.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs