By The Reserve Bank of Australia (RBA) has hinted at potential rate cuts in the coming months, adopting a cautious approach to further monetary easing. The announcement, made on February 18, 2025, reflects the central bank’s response to slowing inflation and global economic uncertainty.
RBA Governor Michele Bullock highlighted the need for a balanced strategy, noting that while rate cuts could support economic growth, the bank must remain cautious about inflationary pressures. The RBA’s benchmark interest rate currently stands at 3.85%, following a series of hikes in 2023 and 2024.
Economists anticipate a 25-basis-point rate cut in the second quarter of 2025, with further easing dependent on economic conditions. The Australian dollar weakened slightly following the announcement, as markets adjusted to the prospect of a dovish policy shift.