The Reserve Bank of Australia has cut its key rate to 3.75 per cent from 4.25 per cent. Most analysts say the interest rate cut was more-than-expected because economic conditions were somewhat weaker than forecast. There have been increasing signs that Australia's economy is being hit by a slowdown in global growth and demand for its resources. The Reserve Bank of Australia in a statement said the decision is based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated. It said growth in the world economy slowed in the second half of 2011, and is likely to continue at a below-trend pace this year.