Australia's central bank today lowered the cost of borrowing for the second month in a row, bringing interest rates to a new historic low. 

The Reserve Bank of Australia announced it had cut rates by another 25 basis points to 1% after its regular policy meeting. 

The bank is battling to extend a record 28-year-run without a recession against increasing headwinds - including low wages and a housing slump. 

Last month it cut rates for the first time in three years, but with growing concern about the economy RBA officials believed further action was warranted. 

"This easing of monetary policy will support employment growth and provide greater confidence that inflation will be consistent with the medium-term target," Governor Philip Lowe said in a statement. 

The move comes as central banks around the world shift to a more accommodative footing as the global economy stutters in the face of trade uncertainty.