Australia cuts base rate

Australian interest rates have been cut again in a move that could help lower the cost of mortgages for property in Australia
The Reserve Bank of Australia has voted to trim the rate by 0.25 per cent to three per cent, with effect from tomorrow.

Governor of the bank Glenn Stevens said the world economic situation, the fact that Australia's economy is contracting and the prospect that inflation will weaken all justified the move.

Mr Stevens also noted that the availability of credit has weakened, although it has increased for owner-occupied housing, something that may encourage those keen to buy in Australia.

In another development that may bolster Australia, prime minister Kevin Rudd has announced a £21 billion project to extend the broadband network reach across the country.

This will end the status of the nation as a "broadband backwater", Mr Rudd stated.

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