Australia cuts interest rates

Sydney: Australia´s central bank on Tuesday slashed interest rates to a record low and said it was ready to provide further action if needed as policymakers around the world pledge economic support against the impact of the coronavirus.

In lowering rates by 25 basis points to 0.50 percent, Reserve Bank of Australia boss Philip Lowe warned global growth was expected to be lower in the first half of 2020 and COVID-19 was also having a "significant effect" domestically.

Australia´s education and travel sectors, which are heavily reliant on China -- where the outbreak started -- have been particularly hard hit and surrounding uncertainty is also likely to impact spending.

"Given the evolving situation, it is difficult to predict how large and long-lasting the effect will be," Lowe said in a statement. "Once the coronavirus is contained, the Australian economy is expected to return to an improving trend." "Policy measures have been announced in several countries, including China, which will help support growth," he said. "In most economies, including the United States, there is an expectation of further monetary stimulus over coming months."