The RBA was too slow to lift rates, and it didn't want to make the same mistake when cutting them, the central bank's governor has told a parliamentary committee.

Michele Bullock says the bank’s heavy-footed response to inflation weighed on the board’s mind as it made the first cut to interest rates in years.

Bloomberg reporters answer your questions on how the Australian central bank’s rate cut and the ongoing housing crisis could reshape the 2025 election.

SYDNEY–The Reserve Bank of Australia cut interest rates for the first time since 2020 on Tuesday, joining its international counterparts in the global easing cycle and opening the door for the immediate calling of a federal election,

The Reserve Bank of Australia (RBA) announced a rate cut of 25 basis points, bringing the cash rate down to 4.10% on Tuesday. This move marks the first rate reduction since November 2020, signaling the bank’s concern over domestic economic uncertainties.

Australia’s central bank still has “work to do” to bring inflation back to its 2-3% target and doesn’t yet share the market’s confidence about the trajectory of interest-rate cuts, Deputy Governor Andrew Hauser told Bloomberg in an interview Thursday.

The Reserve Bank Board of Australia (RBA) announced they had cut interest rates by 25 basis points to 4.10%. The easing is the first since November 2020, when the central bank cut rates while grappling with the pandemic’s economic slowdown.