Australia's central bank cuts rates to two-year low of 3.60%

Australia’s central bank on Tuesday reduced its benchmark cash rate by 25 basis points to 3.60%, marking its lowest level in two years.

The move was driven by signs of cooling inflation and a moderating labour market.

In its statement after a two-day policy meeting, the Reserve Bank of Australia said current data suggested core inflation would ease toward the midpoint of its 2%–3% target band, even if monetary policy is loosened only gradually.

The bank, however, remained cautious about the scope for further rate cuts.