RBA slashes interest rates to 4.1% in its first cut since the early days of the pandemic

<p>A household with a $750,000 loan will see their monthly repayments reduce by $115 if their bank adjusts its mortgage rate accordingly</p><ul><li><a href="https://www.theguardian.com/australia-news/live/2025/feb/18/australia-news-live-rba-reserve-bank-interest-rates-decision-oscar-jenkins-ukraine-russia-video-nsw-racial-hatred-election-campaign-anthony-albanese-peter-dutton-cost-of-living-ntwnfb">Follow our Australia news live blog for latest updates</a></li><li>Get our <a href="https://www.theguardian.com/email-newsletters?CMP=cvau_sfl">breaking news email</a>, <a href="https://app.adjust.com/w4u7jx3">free app</a> or <a href="https://www.theguardian.com/australia-news/series/full-story?CMP=cvau_sfl">daily news podcast</a></li></ul><p>The Reserve Bank has cut the cash rate to 4.1% with a quarter-point reduction, offering a reprieve to indebted households buffeted by years of high living costs and heavy mortgage repayments.</p><p>The decrease is the first since the early days of the Covid-19 pandemic, and has arrived just in time for the Labor government to campaign on its economic credentials before an election to be fought on cost-of-living policies.</p><p><strong><a href="https://www.theguardian.com/email-newsletters?CMP=copyembed">Sign up for Guardian Australia’s breaking news email</a></strong></p> <a href="https://www.theguardian.com/australia-news/2025/feb/18/rba-slashes-interest-rates-to-41-in-its-first-cut-since-the-early-days-of-the-pandemic">Continue reading...</a>