Aust stocks close lower

Local bourse pares early losses but still in red following RBA growth downgrade.

The Australian share market has closed half a per cent lower after the Reserve Bank of Australia downgraded its economic growth forecast.

At the official market close of 1615 AEDT, the benchmark S&P/ASX200 index fell 0.39% to 5,400.7 points, while the broader All Ordinaries index also retreated 0.39% to 5,394.4 points.

In its November statement on monetary policy, the central bank cut its GDP forecast for the year to December 2014 to to between 2% and 3%, down from 2.5% to 3.5% in August .

The RBA also explicitly stated it had left the door open to further rate cuts.