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For the first time since October 2020, Australia's central bank cuts interest rate
Australia Central Bank: This change in the rate is a welcome development for the leftist Labor Party government of Prime Minister Anthony Albanese, which will seek re-election in the elections to be held on May 17.
On Tuesday, Australia's central bank cut its key interest rate for the first time since October 2020 amid low inflation in the country. The Reserve Bank of Australia cut the cash rate by a quarter percentage point from 4.35% to 4.1% at its first board meeting of the year.
The cut had been anticipated after inflation had risen only 0.2% in the December period and 2.4% for the 2024 calendar year. The inflation had been 7.8%, its highest, two years ago. The bank controls the interest rates in order to keep inflation between 2% and 3%.
Australia's unemployment rate fell to a record low of 4% in December, down from 3.9% in November. The change in the rate is a welcome development for Prime Minister Anthony Albanese's left-wing Labor Party government, which will seek re-election in the May 17 election.
