RBA cuts interest rate to 1.5%

As markets expected, the Reserve Bank of Australia cut its key interest rate by 25 basis points to a fresh record low of 1.50% at its August monetary policy meeting on Tuesday, as official data last week showed core inflation hit 1.5% in the Q2, below the central bank's 2% to 3% target level. The RBA also mentioned the strong Australian Dollar and weak labour markets as the main reasons for the following move.