Reserve Bank of Australia and Cash Interest Rate

Central bank officials: Shares rose to their highest level in six months after the Reserve Bank of Australia cut the cash interest rate to 1.75%, a new record low, from 2%. Central bank officials hope easing policies will combat low inflation and a strong local currency, according to Market Watch. The Australian dollar AUDUSD, +0.0000% fell sharply after the rate cut, weakening almost 2% to as low as 75.57 U.S. cents. Australia S&P/ASX 200 XJO, -1.54% led the Asia-Pacific region with a 2.1% gain, buoyed by strength in banking shares. Meanwhile in China, the Shanghai Composite Index SHCOMP, -0.05% closed up 1.9%, while the smaller Shenzhen Composite Index 399106, -0.02% rose 2.9%. Markets resumed trading after being closed Monday. On Friday, Xi chaired a Communist Party Politburo meeting of Chinese leaders who urged strengthening market supervision and protecting investor interests, according to a statement carried by official media. Analysts attributed the gains to Chinese traders who were encouraged by President Xi Jinping after-market hours call late last Friday to maintain a healthy development of the stock market. (news.financializer.com). As reported in the news.