The much discussed RBA decision today confirmed a drop of 25 basis points to 3.85%.  Some economists thought a drop of double that would be appropriate given that inflation was now well withing the target range of 2 to 3%.

Another cut next month looks likely, probably of the same order.

Image: Image: Courtesy R Chambers

Produced By: Roderick Chambers

Featured In Story: Professor Tim Harcourt – Industry Professor and Chief Economist at the Institute for Public Policy and Governance at the University of Technology Sydney

First aired on The Wire, Tuesday 20th May 2025