Australia’s central bank has reduced its benchmark interest by a quarter percentage point for a second time this year to 3.85% after inflation fell within a target range.

Australia’s central bank has cut its policy rate to 3.85% as inflation concerns in the country continue to recede.

The Australian dollar slipped on Tuesday after the country's central bank cut interest rates as expected while highlighting the economic risks from a global trade war, supporting market wagers for further easing ahead.