The Reserve Bank of Australia reduced its cash rate by 25 basis points to 3.85% on Tuesday, marking the second cut of the current easing cycle. The decision was confirmed on the RBA's website.
The board noted that inflationary pressures had eased sufficiently to justify a further reduction in the policy rate. Officials cited global trade uncertainty as a material downside risk that could weigh on growth and employment should external conditions deteriorate further over the months ahead.
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The board did not commit to any specific path for rates at future meetings.