The Wall Street Journal: Reserve Bank of Australia cuts cash rate to record low of 1.5%

SYDNEY—Australia’s central bank cut interest rates Tuesday, responding to record-low inflation and a slowing jobs market.

The Reserve Bank of Australia reduced its cash rate by a quarter of a percentage point to 1.50%, the first cut since May. The result was expected, with financial markets pricing in a roughly 66% chance of a cut before the decision.

“The board judged that prospects for sustainable growth in the economy, with inflation returning to target over time, would be improved by easing monetary policy at this meeting,” Central Bank Gov. Glenn Stevens said in an accompanying statement.

Official figures last week showed core annual inflation hit 1.5% in the second quarter, well below the RBA’s 2% to 3% target band.

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