Australia's central bank has cut its cash rate a quarter point to an all-time low of 1.75 percent. Policymakers hope to head off deflationary forces in Australia with Tuesday's action after a low inflation reading in the first quarter.

The Reserve Bank of Australia says the move follows lower-than-expected inflation pressures. Subdued growth in labour costs and low cost pressures globally point to a lower outlook for inflation than previously forecast. The RBA expects prospects for sustainable growth in the economy to improve as inflation returns to its target over time.