Australia cuts interest rates

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A link from RBA

In good news for the dealers and diggers who work in Australia’s banks and mines, the country’s central bank today cut interest rates by 25 basis points to 3.25%. In its statement, the Reserve Bank of Australia blamed China’s slowdown, the European crisis, modest growth in the US, falling commodity prices and a whole other host of woes that people in the place they call the”lucky country” were mostly unaware of six months back. Independent economist Andy Xie has predicted Australia, which saw a huge influx of foreign investment when China was booming and where house prices have soared for several years, could be the next Spain.