Australia's central bank cuts interest rates by 25 basis points

SYDNEY -- The Reserve Bank of Australia's board announced a rate cut of 25 basis points on Tuesday, its second reduction this year as inflation moderates, leaving the country "well positioned" to deal with the "roller coaster" of uncertainty that Donald Trump's tariff policy shifts are causing around the world, said the bank's governor.

The cut, which reduces the RBA's cash rate from 4.1 to 3.85%, was widely anticipated now that price pressures have greatly eased since peak inflation in 2022, the RBA board said in a statement. Its previous cut, in February, was the first easing in over four years.