Australia slashes interest rates

Australia’s central bank cut interest rates by a bigger-than-expected 0.75% amid strong signs the economy is slowing quickly.

The reduction today was the third in a row by the Reserve Bank of Australia as policymakers move aggressively to try to counter the negative effects of the global financial crisis.

Analysts had widely expected the bank to cut rates but most thought the amount would be 0.50%.

The new rate is 5.25%.