Sydney: Australia's central bank on Tuesday reduced its main cash rate by 0.25 percentage points, bringing it to a two-year low of 3.60 percent. The decision was made in response to a slowdown in inflation and a more flexible labour market, though the bank was cautious about the potential for further rate cuts.
According to Emirates News Agency, the Reserve Bank of Australia concluded its two-day policy meeting with the decision to lower the rate. The board indicated that recent data and updated forecasts suggested that core inflation would likely moderate to the midpoint of its 2 percent to 3 percent target band. This assumption is contingent on a gradual easing in monetary policy.
The central bank's move comes amid efforts to balance economic growth and inflationary pressures. The decision reflects a strategic approach to managing the country's economic conditions, focusing on achieving targeted inflation rates while monitoring the labour market's developments.