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