Global stimulus added to RBA rate cut

Forecasts of low inflation in the world's major economies lifted the chances of further stimulus, influencing the RBA's decision to cut rates this month.

The Reserve Bank cut its key interest rate to a record low of 1.5 per cent this month amid forecasts of fresh stimulus in other major economies.

The RBA cut the cash rate to 1.50 per cent on August 2 on the back of low inflation forecasts, noting its foreign counterparts were facing the same pressures.

"There was a reasonable likelihood of further stimulus by a number of major central banks," the RBA board meeting minutes noted.