Reserve Bank of Australia expects global economic slowdown

UPDATE 5.21pm: THE possibility of further interest rate cuts hinges entirely on developments in Europe's government debt crisis, economists say. In the minutes of its December board meeting, released today, the Reserve Bank of Australia warned economic growth was likely to stall in 2012.

The RBA cut interest rates by 25 basis points to 4.25 per cent at the meeting, citing economic instability in the eurozone.In the minutes, the RBA said that growing turbulence in the eurozone - and the flow-on effects on world markets - had been a dominating factor in the decision.
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