RBA cuts interest rate to record low 1.50 per cent

The Reserve Bank has cut the official interest rate to an all-time low of 1.50 per cent on the back of weak inflation forecasts.

The Reserve Bank of Australia (AAP) Source: AAP

The Reserve Bank has cut its key interest rate to a fresh record low of 1.50 per cent.

RBA governor Glenn Stevens said very subdued growth in labour costs domestically and very low cost pressures globally meant inflation was expected to remain quite low for some time.

"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," Mr Stevens said in a statement on Tuesday.

More to come