Australia’s central bank on Tuesday (February 18) reduced its benchmark interest rate for the first time since October 2020 as the nation’s inflation cools.
| Company | Value | Change | %Change |
|---|
The Reserve Bank of Australia reduced the cash rate by a quarter percentage point from 4.35% to 4.1% at its first board meeting for the year.
The cut was widely anticipated after inflation
rose only 0.2% in the December quarter and 2.4% for calendar 2024. Annual inflation peaked at 7.8% two years earlier.
The bank manipulates interest rates to keep inflation within a target band of between 2% and 3%.
Unemployment in Australia remained at near-record low levels of 4% in December, up from 3.9% in November.
The rate shift is a welcome development for Prime Minister Anthony Albanese’s centre-left Labor Party government which will seek reelection at elections due by May 17.
(Edited by : Anshul)
First Published: Feb 18, 2025 9:33 AM IST
