Australian central bank cuts benchmark interest rate for first time since October 2020

Melbourne, Feb 18 (AP) Australia's central bank on Tuesday reduced its benchmark interest rate for the first time since October 2020 as the nation's inflation cools.

The Reserve Bank of Australia reduced the cash rate by a quarter percentage point from 4.35 per cent to 4.1 per cent at its first board meeting for the year.

The cut was widely anticipated after inflation rose only 0.2 per cent in the December quarter and 2.4 per cent for calendar 2024. Annual inflation peaked at 7.8 per cent two years earlier.

The bank manipulates interest rates to keep inflation within a target band of between 2 per cent and 3 per cent.

Unemployment in Australia remained at near-record low levels of 4 per cent in December, up from 3.9 per cent in November.

The rate shift is a welcome development for Prime Minister Anthony Albanese's centre-left Labor Party government which will seek reelection at elections due by May 17. (AP) GRS GRS

Source: PTI