6 August 2013 Last updated at 01:00 ET
A decline in demand for commodities coupled with falling prices has hurt Australia's economic growth
Australia's central bank has cut its benchmark interest rate to a new record low, in an attempt to spur a fresh wave of economic growth.
The Reserve Bank of Australia (RBA) cut its key rate to 2.5% from 2.75%.
Last week, the government cut its growth forecasts and warned that unemployment in the country could rise amid slowing growth.
The rate cut comes just days after Prime Minister Kevin Rudd called a general election on 7 September.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23584374#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
