Aust stocks close flat

Local market little changed after Reserve Bank cuts the cash rate to a new record low.

The local market closed flat today after the Reserve Bank of Australia's widely expected decision to cut the cash rate 25 basis points to 2.5% had little effect on afternoon trade.

At 1615 AEST official market close, the S&P/ASX 200 benchmark index edged down 0.11% to 5,105.6 points, while the broader All Ordinaries index inched 0.11% lower to 5,088 points.

CMC Markets analyst Betty Lam said trading was soft during the morning as investors waited for the bank's decision at 1430 AEST.

"With the market already factoring in a 99% chance of a rate cut, it barely registered when the axe was finally dropped," Ms Lam said.

"The local stock index fell a subtle five points shortly after the RBA announcement, as traders didn’t so much as flinch at the news."

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