The Reserve Bank cut official interest rates on Tuesday, the first decrease in four years, saying inflationary pressures are easing “a little more quickly than expected”.
However, the central bank said the outlook for economic activity and inflation remains uncertain, with a risk that household spending may be slower than expected.
The reduction in the cash rate target will come as a relief to the one-third of households with a mortgage. It will help to ease the cost of living crisis for them.
