Australia's Central Bank Slashes Interest Rates Amid Economic Slowdown

In a decisive move to stimulate the economy, the Reserve Bank of Australia announced on Tuesday that it has slashed its benchmark interest rate by a quarter percentage point. The new rate of 3.6% marks the third reduction this year as the nation grapples with stalling economic growth and tempered inflation.

This latest cut, down from 3.85%, follows a series of reductions beginning with a 4.1% rate in May and is the first rate cut by the board since October 2020. Economists widely anticipated the decision as the central bank adjusts its monetary policy to address the country's economic challenges.

With inflation showing signs of decline, this interest rate reduction positions Australia in line with its lowest levels since March 2023, aiming to boost economic activity and provide relief to borrowers.

(With inputs from agencies.)