13.08.201902:55:00UTC+00RBA's Rate Cut To Provide Additional Support To Demand, Says Kent

The weakness in the Australian dollar following the interest rate reduction is underpinning economic growth, Reserve Bank of Australia Assistant Governor Christopher Kent said Tuesday.

RBA had resorted to back-to-back rate cuts in June and July, taking the key rate to a record low 1.00 percent.

Kent observed that the change in the monetary policy stance has lowered the cost of funding and this has passed through to business and household borrowers.

"And notwithstanding an easier stance of monetary policy globally, the decline in interest rates in Australia has contributed to the depreciation of the Australian dollar," said Kent.

"That broad-based easing in financial conditions in Australia will provide some additional support to demand in the period ahead," he noted.