World News | Australian Central Bank Cuts Benchmark Interest Rate for First Time Since October 2020

Melbourne, Feb 18 (AP) Australia's central bank on Tuesday reduced its benchmark interest rate for the first time since October 2020 as the nation's inflation cools.

The Reserve Bank of Australia reduced the cash rate by a quarter percentage point from 4.35 per cent to 4.1 per cent at its first board meeting for the year.

Also Read | UK Prison Shocker: Inquiry Reveals Prisoners 'Inevitably' Having Sex With Each Other at HMP the Verne, Some Inmates 'Groomed' for Sexual Favours.

The cut was widely anticipated after inflation rose only 0.2 per cent in the December quarter and 2.4 per cent for calendar 2024. Annual inflation peaked at 7.8 per cent two years earlier.

The bank manipulates interest rates to keep inflation within a target band of between 2 per cent and 3 per cent.

Also Read | Canada Plane Crash: Toronto Airport Closes 2 Runways After Delta Airlines Flight 4819, Operated by Endeavor Air CRJ-900, Overturns During Landing (See Pic and Video).

Unemployment in Australia remained at near-record low levels of 4 per cent in December, up from 3.9 per cent in November.

The rate shift is a welcome development for Prime Minister Anthony Albanese's centre-left Labor Party government which will seek reelection at elections due by May 17. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)