Australia slashes interest rate

Central bank surprises many economists as it cuts its benchmark to record low of 2.25%

Australia's central bank cut its benchmark interest rate to a record low of 2.25 percent on Tuesday in a bid to jolt an economy weighed down by falling commodity prices.

The Reserve Bank of Australia's quarter percentage point rate cut at a monthly board meeting was its first since August 2013 and came as a surprise to many economists, who expected the bank to hold off on lowering the rate until later in the year.