The Reserve Bank of Australia’s Board of Directors decided at its meeting this morning, Tuesday, August 12, to cut interest rates by 25 basis points, as expected, to 3.60%, bringing the total cut this year to 75 basis points, bringing interest rates to their lowest level since April 2023.
The bank’s interest rate statement stated that core inflation has declined towards the 2-3% target range and labor market conditions have improved slightly, as expected. However, the Board remains cautious about the outlook and that uncertainty regarding the global economy remains high.
The Board emphasized that it is paying close attention to data and the evolving assessment of risks, global developments, trends in domestic demand, inflation expectations, and labor markets, and will do what it deems necessary to achieve price stability and full employment.