The Australian Central Bank cut it's key rate by 25 bps to 4.5%. The move was in line with expectations. The Reserve Bank of Australia cut interest rates for the first time in two and a half years.

"With overall growth moderate, inflation now likely to be close to target and confidence subdued outside the resources sector, the Board concluded that a more neutral stance of monetary policy would now be consistent with achieving sustainable growth and 2-3% inflation over time," Glenn Stevens, Governor of the Reserve Bank of Australia said in a statement.

The move was widely expected as similar moves were witnessed in Indonesia, Singapore and Brazil as the central banks cut rate on slowing growth concerns.

High interest rates and a strong Australian dollar has effected the manufacturing activity in the economy and also raised the unemployment levels recently.

Australia October PMI

The PWC PMI survey registered improvement of 5.1 points to 47.4. The manufacturing improved during the month but still remained in the contraction mode.