(MENAFN– ecpulse) Australian business confidence slid to the lowest in nine months in May, despite the central bank’s interest rates cut to the lowest in three years, amid global uncertainties, especially as Europe’s debt crisis continues to deepen while Greece may leave the euro zone.
The Australian economy announced its reading of NAB business confidence for May, where the actual reading slid to -2, compared with the previous 4.
The RBA decided last week to cut the benchmark interest rate by a quarter percentage point in order to support the nation’s growth amid the uncertain global recovery especially with the instability in the euro zone.
The Reserve Bank of Australia lowered its benchmark interest rate by 25 basis points to 3.50%, taking rates lower for the second consecutive month after the surprise 50 bp cut in May.
The Australian economy is driven by the mining sector, especially on China’s demand the main trade partner for Australia, as the nation is investing A$500 billion ($494 billion) in resource projects by companies such as BHP Billiton Ltd., the world’s largest mining company.
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