Australia's central bank cuts interest rate

Australia's central bank cut its benchmark interest rate for the first time in seven years amid signs the nation's $1 trillion economy is slowing.

Governor Glenn Stevens and his board reduced the overnight cash rate target by a quarter point to 7 percent in Sydney yesterday, as forecast by 22 of 23 economists surveyed by Bloomberg News. The biggest slump in retail sales in six years, tumbling business confidence and slower jobs growth means "there was now scope for monetary policy to become less restrictive" Stevens said.

Gross domestic product expanded by the least in two years in the second quarter, economists surveyed ahead of a September 3 report forecast.