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Australia's Reserve Bank (RBA) cut its benchmark interest rate by 0.25% to 3.6%, its lowest since April 2023, citing substantially decreased inflation (2.1% in Q2). While acknowledging the rate's impact on households, the RBA didn't rule out further cuts if needed. The RBA lowered its economic growth forecast to 1.7% for the year, attributing the slowdown to weaker public demand and lower productivity growth, rather than trade disruptions. Analysts predict further rate cuts in the coming year.

Prepared by Christopher Adams and reviewed by editorial team.