The Reserve Bank of Australia cut its key policy cash rate by a further 25 basis points to 3.5% on June 5, after it already slashed its benchmark rate by 50bp on May 1.

Glenn Stevens, governor of the central bank, pointed to further weakening in Europe, and a slowdown in growth expectations in China and the US, as important reasons behind the latest cut. He added that financial market sentiment had deteriorated during the past month, partly in response to the threat of adverse shocks from Europe