Australia, too, after Great Britain, lowers interest rates
The Reserve Bank cut the cost of money to 3.6 %: this is the third cut in 2025. Inflation down from 2022 peak
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Key points
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Tonight, the central bank of Australia cut the reference interest rate by a quarter of a percentage point for the third time this year, to 3.6%, in the face of subdued inflation and stalled economic growth.
A series of cuts
.The Reserve Bank of Australia reduced its benchmark interest rate from 3.85%. The rate had been reduced from 4.1% in May. The reduction from 4.35%, decided at the February board meeting, was the first in Australia since October 2020. The new rate is the lowest since March 2023 and the cut was widely expected given the continued decline in inflation.
Inflation falling
.There was a halt in the series of cuts in June, when the bank left rates unchanged, against market expectations for a 25 basis point cut to 3.6 per cent implemented three months later. Inflation in Australia has fallen substantially since its peak in 2022.
