RBA cuts interest rates again this year

Source: Xinhua News Agency

Xinhua News Agency, Sydney, May 20 (Reporter Li Xiaoyu) The Reserve Bank of Australia (Central Bank) announced on the 20th that it would lower the benchmark interest rate by 25 basis points to 3.85%. This is the second time the RBA has cut interest rates after lowering its benchmark interest rate in February this year.

In a monetary policy statement, the Australian Central Bank said that there is still considerable uncertainty in the final scope of the US government tariffs and the intensity of other countries' response measures, and geopolitical uncertainty is still prominent. These situations will have an adverse impact on global economic activities and may also lead to weak prospects for Australia's economic growth and employment. Considering the pressure on the economy that the international situation puts on the economy, the RBA believes that the rate cut is "appropriate" and is cautious about the economic outlook.

From May 2022 to November 2023, the Australian Central Bank raised interest rates by a total of 425 basis points. Since then, the bank has kept the benchmark interest rate unchanged for several consecutive times until it announced a 25 basis point cut to 4.1% in February this year, the first rate cut in more than four years. In April this year, the RBA kept the benchmark interest rate unchanged.

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