Australia cuts interest rates

The central bank trimmed rates to 4.25% from 4.5%, amid cooling inflation and growing concerns over the European debt crisis.

It was the 2nd monthly reduction and follows signs that slower growth in Europe is hurting Asian trade and financing around the world. Analysts see more reductions in early 2012. Australia sends 7% of its exports to Europe. But China, which is Europe’s top trading partner, accounts for 26% of Aussie exports.