Australia's central bank slashed its cash-rate target by 50 basis points to 3.75% yesterday.
The cut by the Reserve Bank of Australia surprised financial markets and was the first easing since December. Economists had been expecting at 25-basis-points cut. It was the biggest single move in interest rates since February 2009 when the RBA was still managing the collapse in global confidence following the demise of Lehman Brothers.
The sharp reduction in rates comes amid signs the economy has slowed sharply in recent months in areas outside of the booming mining sector.