The Reserve Bank of Australia has cut interest rates for the third time this year, bringing them to the lowest level since April 2023.

The Reserve Bank of Australia cut interest rates for the third time this year and indicated that future decisions will depend on economic data. The RBA reduced the policy rate to 3.6% on Tuesday, the lowest level since April 2023, in line with market expectations. The RBA has now cut rates by 75 basis points in this current easing cycle. With the labor market still tight and weak productivity growth, focus is now shifting to potential future rate cuts. The RBA Monetary Policy Committee stated in its policy statement, "Given that core inflation continues to fall toward the midpoint of our 2%-3% target range and the labor market has cooled slightly as expected, the committee believes further easing of monetary policy is appropriate." Following the RBA's decision, the Australian dollar against the US dollar fell to 0.6505, and the yield on Australia's three-year government bond, sensitive to policy changes, dropped to 3.41%.