On 20 May 2025, Reserve Bank of Australia (RBA) lowered the cash rate by 25 basis points to 3.85%. This is in line with RBA's assumption that inflation is decelerating, as trimmed mean annual inflation rate fell to 2.9% and headline inflation fell to 2.4%. Despite the healthy labor market, the RBA is cautious about risks to the economy's outlook, such as declining household consumption and international events. The monetary policy of the RBA is focused on price stability and full employment amid foreign uncertainty. The Board observes that inflation risks are no longer skewed to the downside and require less cautious policy response. But they are data-sensitive and bound to respond sharply to any material changes in the Australian economy.
Markets and economists had broadly expected the rate cut, but RBA Governor Michele Bullock's subsequent comments and updated economic projections will give greater clarity to the central bank's thinking. Look for whether there is any suggestion of future rate action, particularly in response to global risks like US tariffs and the eventual impact on Australia's economy.


China Vanke Hit with Fresh S&P Downgrade as Debt Concerns Intensify
BOJ Governor Ueda Meets Key Ministers as Markets Eye Policy Shifts Under New Leadership
RBA Reassesses Pricing Behaviors and Policy Impact Amid Inflation Pressures
Japan’s Finance Minister Signals Alignment With BOJ as Rate Hike Speculation Grows
Airline Loyalty Programs Face New Uncertainty as Visa–Mastercard Fee Settlement Evolves
Bitcoin Smashes $93K as Institutions Pile In – $100K Next?
Morgan Stanley Boosts Nvidia and Broadcom Targets as AI Demand Surges
Japan’s Inflation Edges Higher in October as BOJ Faces Growing Pressure to Hike Rates
Fed Rate Cut Odds Rise as December Decision Looks Increasingly Divided
U.S. Black Friday Online Spending Surges to $8.6 Billion, Boosted by Mobile Shoppers
India’s IT Sector Faces Sharp 2025 Valuation Reset as Mid-Caps Outshine Large Players 



