HOBART, Oct 9 (Reuters) - Last week's cut in Australianinterest rates was driven primarily by a weakening in globalgrowth and a softening in the labour market at home, a topcentral banker said on Tuesday.
After giving a speech on employment in Tasmania, ReserveBank of Australia (RBA) Deputy Governor Philip Lowe was asked ifa fall in iron ore prices had led the bank to cut interest ratesa quarter point to 3.25 percent.
Iron ore is Australia's single biggest export earner andweaker prices have led some miners to row back on their mostambitious expansion plans in recent months.
Lowe said the RBA would not change monetary policy just torespond to movements in the volatile price of iron ore. Rather aweaker global outlook and a softening in the domestic labourmarket were the "primary factors" behind the cut in rates.
(Reporting by Wayne Cole)
Keywords: AUSTRALIA ECONOMY/RATES