Australia’s central bank will embark on interest-rate cuts next month, according to a majority of economists polled by Bloomberg, in what would be its first monetary easing in more than four years.

Australia’s quarterly inflation data this week may be key to whether the central bank finally embarks on a monetary easing cycle soon, and in turn, help decide the timing of an election due by May 17.

The cash rate has stayed the same since November 2023, with Reserve Bank of Australia (RBA) governor Michele Bullock saying that taming inflation is a "balancing act". So, what does the RBA consider when setting its cash rate target,

Good morning. It’s Angus in Sydney with the key morning news items.Today’s must-reads:• Australia’s inflation cools• US Fed in no rush to cut rates further• New Zealand’s largest solar farm

Australia’s underlying inflation rate has fallen to 3.2%, its lowest level in three years, fueling expectations that the Reserve Bank of Australia (RBA) may reduce interest rates in the coming months.

News Corp Senior Writer Patrick Carlyon breaks down the latest data concerning Australia’s inflation numbers. “This is great news for Australians,” Mr Carlyon told Sky News host Danica De Giorgio. “These numbers do give the Reserve Bank ground to actually drop interest rates later this month.