The Reserve Bank of Australia (RBA) has cut its policy interest rate by 25 basis points to 4.1%, marking its first reduction since November 2020. The move follows a prolonged tightening cycle that saw rates rise from 0.1% to 4.35% between May 2020 and November 2023.
The RBA had maintained rates for the past nine consecutive meetings, but with inflation easing from its 2022 peak, the central bank sees room for adjustments.
In a statement, the bank said higher interest rates have helped balance supply and demand, though it warned of upside risks to inflation, particularly as labour market data remains unexpectedly strong.
"The labour market may be somewhat tighter than previously thought, creating uncertainties in the economic outlook," the RBA noted.
Despite the cut, the bank signaled a cautious approach moving forward, highlighting ongoing uncertainties in domestic growth and inflation trends.
đź“Š Key Takeaways:
✔️ First rate cut in over four years
✔️ Inflation easing but risks remain
✔️ Labour market strength could influence future decisions
Read next
21:30
Peace Prospects
U.S. President Donald Trump has expressed optimism about a potential full ceasefire in the ongoing Russia-Ukraine war, stating that peace could soon be achieved. Trump's comments add to the growing international calls for de-escalation as the conflict continues to devastate the region.
21:00
FCC Investigation
The U.S. Federal Communications Commission (FCC) has initiated an investigation into several major Chinese companies, including Huawei, ZTE, and China Telecom, to determine if they are circumventing U.S. sanctions and regulations designed to protect national security.
20:33
Tariff Update
Wall Street’s major indexes showed slight improvement on Friday after President Donald Trump suggested flexibility on upcoming tariffs, easing market concerns ahead of potential trade measures next month.
20:26
Boeing Victory
Boeing has won a $20 billion contract to build the F-47 fighter jet for the U.S. Air Force, marking a major boost for the company amid recent challenges.
20:24
Pentagon Meeting
Elon Musk's push to reform U.S. government spending reached new heights on Friday as he held an unprecedented meeting with Defense Secretary Pete Hegseth at the Pentagon, where discussions centered on innovation, efficiencies, and streamlining Pentagon operations.
What is your opinion on this topic?
Leave the first comment