Australia's central bank slashed interest rates by one percentage point Tuesday in the latest bold move by the country's top finance officials to stave off a recession.

The reduction is the fourth in a row by the Reserve Bank of Australia and takes the cash rate to 4.25 percent. It was larger than predicted by analysts, most of whom had expected a 0.75 percentage point cut.

The global financial crisis has taken Australia's economy from boom times to the verge of recession in a matter of months, and policymakers are throwing billions of dollars at the economy to try to stop it from tipping over the edge.