The Reserve Bank cuts the official interest rate to a new record low of 1.25 per cent at its June 2019 meeting.

The Reserve Bank has cut its official interest rate by 0.25 percentage points to a new record low of 1.25 per cent. The RBA was tipped to move rates for the first time with most economists and the futures market expecting one more cut before the end of 2019. The RBA governor Philip Lowe said the move would help reduce unemployment and boost inflation back towards its 2-3% target range. “The board will continue to monitor developments in the labour market closely and adjust monetary policy to support sustainable growth in the economy and the achievement of the inflation target over time,” Dr Lowe concluded.