2024-2025
INTRODUCTION TO
MACROECONOMICS
SUMMARY
THE NEWSPAPER ARTICLES
KOEN HANEGREEFS
VUB
, Summary newspaper articles:
Oceania:
Reserve Bank of Australia cuts interest rates / cash rate by 0.25%
The Reserve Bank of Australia (central bank) has cut its cash rate for the first time in 4 years since it started
rising in November 2020. The last raise was in November 2023 which put it at 4.35% and now (2025) with the
decrease of 0.25% at 4.10%.
Why:
- Inflation pressures were showing signs of easing more quickly than expected.
- Australia’s tight labour market
- Global uncertainty ó trumps trade war
- High borrowing costs
Australia’s headline inflation also fell to 2.4% coming from 2.8% in the previous 3 months.
The RBA’s trimmed mean measure of inflation dropped to 3.2% coming from 3.6% in the previous quarter. The
RBA’s trimmed mean excludes volatile factors from the calculation (e.g. oil prices).
INTRODUCTION TO
MACROECONOMICS
SUMMARY
THE NEWSPAPER ARTICLES
KOEN HANEGREEFS
VUB
, Summary newspaper articles:
Oceania:
Reserve Bank of Australia cuts interest rates / cash rate by 0.25%
The Reserve Bank of Australia (central bank) has cut its cash rate for the first time in 4 years since it started
rising in November 2020. The last raise was in November 2023 which put it at 4.35% and now (2025) with the
decrease of 0.25% at 4.10%.
Why:
- Inflation pressures were showing signs of easing more quickly than expected.
- Australia’s tight labour market
- Global uncertainty ó trumps trade war
- High borrowing costs
Australia’s headline inflation also fell to 2.4% coming from 2.8% in the previous 3 months.
The RBA’s trimmed mean measure of inflation dropped to 3.2% coming from 3.6% in the previous quarter. The
RBA’s trimmed mean excludes volatile factors from the calculation (e.g. oil prices).
