The Reserve Bank of Australia’s Soft Landing

Good morning everyone, it’s Ainslie in gloomy Sydney, with all the morning news. It seems even Chanel isn’t immune to the impact of the tariff wars. But first...

Today’s must-reads:
• Has the RBA’s experiment paid off?
• New Zealand budget preview
• Elon Musk talks to Bloomberg News

Through the post-Covid cost-of-living crisis, Australia’s central bank took a gentler approach than global peers to reining in inflation, managing to keep the economy close to full employment throughout — a rare feat that’s sparked debate about its viability as a model to tackle future crises. The RBA on Tuesday cut the key interest rate by 25bps to a two-year low of 3.85%, its second cut in the current easing cycle.