An attempt to reduce the risk of a sharp weakening of demand was behind the Reserve Bank of Australia's cut in the cash rate by 75 basis points to 5.25%, according to minutes of the November meeting.

The board noted that the staff's forecast for growth had been lowered and the risks to the outlook remained on the downside. Members were conscious of the high rate of inflation, but decided that a rate cut would not undermine the task of bringing inflation down to the target.

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