Reserve Bank of Australia (RBA) in the Central Bank building in Sydney, Australia on May 2, 2022.
Brendon Thorne Bloomberg Getty images
On Tuesday, Bank Reserve Australia lowered the percentage rates of references for the first time in over four years, joining the ranks with other main global central banks, because the softening inflation allows for the supply of politics.
RBA reduced rates by 25 base points to 4.10%, According to his statement on Tuesday. This meant the first relief of the RBA November 2020, when the central bank lowered the key rate to a record low When she fought for a slow economy during a pandemic.
“While today's political decision recognizes welcome progress in the field of inflation, the Management Board remains careful in relation to further resources of the principles,” said members of the RBA board in a statement.
The central bank maintained a policy rate of 4.35% from November 2023, after a longer period of 13 rate increases for tame inflation at home.
Tuesday's decision was consistent with market expectations, and government bonds have been accumulating in recent weeks of anticipating interest rate reduction. According to LSEG data, profitability into 10-year government bonds fell by almost 20 base points from 13 to 4.450% on Tuesday.
RBA remained behind the main global central banks, which began a soothing cycle at the end of last year.
At the last political meeting in December the Central Bank He said it was more confident This Inflation has dropped And this can allow him to alleviate the policy at some stage.
Inflation of Australia within 12 months through the December quarter, it decreased to 2.4%Compared to 2.8% within 12 months to the quarter of September, according to Australian Bureau of Statistics.
RBA set an average timely inflation target from 2% to 3%. Based on the quarter, consumer price indicator increased by 0.2% in the ending quarterSoft than a 0.3%forecast.
One of the factors refraining up after the cash rate descent was the strength of the labor market, with The unemployment rate rises near the historic low Level 4.0% in December.
Limiting the cost of a loan would also be a shot in the shoulder government, which is preparing for difficult choices this year, among the slow economic growth.
“There is a significant uncertainty as to the perspective of national economic activity and inflation. The central forecast involves the increase in household consumption as an increase in income increases. But there is a risk that all consumption reception is slower than expected “, RBA” rba “, rba”, RBA said.
The Australian dollar strengthened 0.22% on Tuesday to 0.6340 compared to the American dollar. Index ASX 200 extended the losses on Tuesday, dropping 0.6%.
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