Australia's point cut marks seven-year low

The Reserve Bank of Australia has slashed its key rate by a full percentage point to 4.25%, its lowest level since December 2001.

Most analysts expected a three-quarter point cut. But Glenn Stevens, the governor of the Reserve Bank, said signs of flagging aggregate demand warranted a steeper move.

"The Australian economy has been more resilient than other advanced economies, but recent data nonetheless indicate that a significant moderation in demand and activity has been occurring," Stevens