Australian shares stayed supported as the Reserve Bank of Australia (RBA) has cut official interest rates to 0.75%, bringing the cash rate to a historical low amid rising concerns about the state of the economy. The move, which was tipped by markets, comes on the back of rising unemployment and stubbornly low wages growth. The S&P/ASX 200 index is up 0.23% at 6703 after falling modestly in last session. The index has been mostly choppy in recent times. The index had hit a seven week high around 6750 in third week of September before pulling back. The benchmark stock price index ended September with a gain of 1.65%, after a drop in August that ended a seven-month winning streak.
Overnight cues were positive with US stocks ending on a supportive note as some buying emerged following recent losses. The move from Australian central bank was widely expected. The Reserve Bank Governor Philip Lowe's latest speech to the Armidale Business Chamber on had made it clear the RBA could not afford to stand by and ignore the global push by central bankers to bring interest rates lower.
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