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Melbourne, Australia (AP) – Australia’s central bank on Tuesday reduced its Benchmark interest rate for the first time since October 2020.
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Australia’s Reserve Bank reduced the cash rate from 4.35% to 4.1% by a quarter of a point. At the first board of the year.
The cut was widely expected after inflation 0.2% of the December quarter and only 2.4% rose to the calendar 2024. Annual inflation rose to 7.8% two years ago.
The bank handles interest rates to keep inflation from 2% to 3% to keep the target band.
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“Inflation has declined significantly since 2022, as there are high interest rates working to bring close demand and distribution towards balance,” the Board said in a statement.
Unemployment in Australia was 4% at the lowest level in December, which was 3.9% in November.
This rate of change is a welcome development of the central-left-left Labor Party government of Prime Minister Anthony Albanis, which will seek re-election in elections by May 17.
Treasurer Jim Salmers welcomed the decision of the Independent Board.
“This is a need for Australians and qualified proportions,” Salmers said in a statement. “This will not solve every problem in our economy or home budgets, but it will help.”
On May 21, 2022, the government has been elected to the first three years of its first three years.
On May 4, 2022 the cycle began in the final days of the previous government’s term when the rate rose to 0.1% to 0.35%.
The high cost of living in the upcoming election campaign and the shortage of housing around Australia are expected to be big problems.
The Central Bank has been at 4.35% since November 2023. This is the highest rate from 4.5% to 4.25% in December 2011.
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