RBA cuts cash rate to 3.85%
By Sophia Rodrigues
Published On 20 May 2025 , 02:48 PMThe Reserve Bank of Australia lowered the cash rate by 25bps to 3.85%, citing continued easing in inflation as reflected in the March quarter CPI data.
The statement implied more cuts are possible as underlying inflation is now expected to be around the midpoint of the 2-3% range through most of the forecast period.
In a severe downside scenario, the RBA said it is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia.
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