US EditionAustralia's Central Bank Cuts Interest Rate for Third Time This Year to 3.6%
AUSTRALIA, AUG 12 – The Reserve Bank of Australia’s third rate cut this year lowers the official cash rate to 3.6%, saving mortgage holders nearly $90 monthly on a $600,000 loan, analysts say.
- On Tuesday, Australia's central bank lowered its key interest rate by 25 basis points to 3.6%, marking the third decrease this year.
- The cut followed gradually declining inflation, with annual inflation falling to 2.1% in May after peaking at 7.8% in late 2022.
- Economic growth has slowed to 0.2% in the March quarter and unemployment rose from 4.1% to 4.3% in June, indicating some economic stalling.
- The unanimous board decision came as homeowners with a $600,000 mortgage will save about $90 monthly, while the bank's preferred trimmed mean inflation fell to 2.4%.
- The rate cut eases borrowing costs but cautious outlooks suggest this might be the last cut for now as global uncertainties and inflation risks remain elevated.
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What the RBA's August interest rate cut means for you and markets
SBS Finance Editor Ricardo Gonçalves speaks with NAB's Gareth Spence to find out why the RBA cut interest rates and if there are more to come, Sally Tindall from Canstar looks through the impact for borrowers, while Michael Jenneke from UBS Wealth Management discusses what it means for investors.
·Sydney, Australia
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Total News Sources94
Leaning Left27Leaning Right10Center12Last UpdatedBias Distribution55% Left
Bias Distribution
- 55% of the sources lean Left
55% Left
L 55%
C 24%
R 20%
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