RBA slashes interest rates to 4.1% in its first cut since 2020.

The Reserve Bank has cut the cash rate to 4.1% with a quarter-point reduction, offering a reprieve to indebted households buffeted by years of high living costs and heavy mortgage repayments.

The decrease is the first since the early days of the Covid-19 pandemic, and has arrived just in time for the Labor government to campaign on its economic credentials before an election to be fought on cost-of-living policies.

Economists view the decision as a sign that Australia’s central bankers believe inflation is being tamed.

Lenders had been dropping their borrowing rates in anticipation of a cut, and should now flow through in full to mortgages.

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