RBA lowers cash rate target to 4.10%

By Sophia Rodrigues

The Reserve Bank of Australia lowered the cash rate by 25bps to 4.10% -- the first rate cut move since November 2020.

The rate cut was assisted by inflationary pressures easing a little more quickly than expected, continued subdued private demand growth and easing wage pressures.

"These factors give the Board more confidence that inflation is moving sustainably towards the midpoint of the 2–3 per cent target range," the RBA said.

The RBA said in removing a little of the policy restrictiveness in its decision, it acknowledges that progress has been made but is cautious about the outlook.