Reserve Bank of Australia Cuts Interest Rates for First Time in 4 Years

The cash rate has been cut by 25 basis points.
Reserve Bank of Australia Cuts Interest Rates for First Time in 4 Years
People cross a road near Pitt Street Mall in Sydney CBD, Australia, on Dec. 24, 2024. Roni Bintang/Getty Images
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The Reserve Bank of Australia (RBA) has delivered a long-awaited New Year decision, cutting the cash rate target from 4.35 to 4.10 percent—the first reduction since November 2020.

Along with the rate cut, the interest rate paid on Exchange Settlement balances will drop to 4 percent, signalling a shift in the bank’s approach to tackling inflation.

Naziya Alvi Rahman
Naziya Alvi Rahman
Author
Naziya Alvi Rahman is a Canberra-based journalist who covers political issues in Australia. She can be reached at [email protected].