Australia cuts rates for first time since 2020
RBA delivers long-awaited 25bp reduction but says markets are overconfident about further easing
The Reserve Bank of Australia today (February 18) reduced its policy rate by 25 basis points to 4.1% but signalled caution on further easing, as inflation returned to the midpoint of the bank’s target range.
Year-on-year headline inflation was 2.4% in the fourth quarter of 2024, down from 2.8% in Q3. Year-on-year core inflation went down from 3.6% to 3.2% over the same period.
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