Australian central bank reduces the interest rate for the first time after more than four years

The Australia’s spare bank on Tuesday reduced reference interest rates for the first time after more than four years, joining the ranks with other main global central banks, as the softening of inflation allows space to mitigate policy.

RBA rates reduce by 25 base points to 4.10%. This marked the first mitigation of RBA November 2020, when the central bank reduced its key rate to a record low level, while struggling with slowing economics during pandemic.

The Central Bank held its rate of 4.35% of November 2023, after an extended period of 13 increasing rates for tame inflation at home.

The decision on Tuesday was in accordance with market expectations, and government bonds have gathered about the reduction of interest rates in recent weeks. The yields on Australian 10 -year -old government bonds reduced almost 20 base points from 13 to 4,450%on Tuesday, according to LSEG DATA.

The RBA lagged behind the main global central banks that began the mitigation cycle late last year.

In his last meeting of politics in December, the central bank said it was more confident that The inflation was declining And that could allow him to alleviate policy at some stage.

Australia’s inflation over 12 months Through December, the quarter decreased to 2.4%Compared to 2.8% in a quarter from 12 months to September, data from the Australian Bureau for statistics showed.

The RBA has attached its medium -sized goal of inflation between 2% and 3%. Based on quarterly, consumer prices index rose 0.2% in a quarter that ended in DecemberSofter from the forecast 0.3%.

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