The Reserve Bank of Australia lowered the cash rate by 25 basis points to 3.85 percent at its meeting today.
It its monetary statement it said inflation had fallen substantially since the peak in 2022, as higher interest rates had been working to bring aggregate demand and supply closer towards balance.
“Data on inflation for the March quarter provided further evidence that inflation continues to ease,” it stated.
“At 2.9 percent, annual trimmed mean inflation was below 3 percent for the first time since 2021 and headline inflation, at 2.4 percent, remained within the target band of 2–3 per cent.”
The statement said forecasts released today projected that while headline inflation was likely to rise over the coming year to around the top of the band as temporary factors unwound, underlying inflation was now expected to be around the midpoint of the 2–3 percent range throughout much of the forecast period.
