The Australian share market has closed lower, with its losses deepening after the Reserve Bank's interest rate announcement this afternoon.
The RBA has dropped the interest rate by 0.25 of a percentage point to 3 per cent, its lowest level in 49 years.
The All Ordinaries Index lost 1.3 per cent to 3,649, led by falls in the mining sector.
The ASX 200 was 50 points lower at 3,706.
Rio Tinto slumped 10 per cent to $53 and Iluka Resources fell by almost 11 per cent to $3.41, after announcing production and job cuts.
The telecommunications sector defied the trend, after the Federal Government announced a public-private partnership to build the National Broadband Network.
Telstra added 14 cents to $35, while Singapore Telecommunications - which owns Optus - rose by six cents to $2.34.
