The Reserve Bank of Australia (RBA) cut interest rates by 25 basis points to a record low of 2.5 percent on Tuesday, as widely expected.
This is the eighth rate cut since November 2011 when the central bank first acknowledged a growth slowdown as the country's decade-long mining boom began to fade.
"Today's rate cut reflects how the interest-sensitive, non-mining sectors of the economy need more juice," Katrina Ell, associate economist at Moody's Analytics told CNBC of the RBA's move.
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"Outside of residential property, the response to the RBA rate cuts so far has been disappointing. Retail trade is weak, unemployment has been drifting higher and investment outside of mining has been perennially weak," she added.