The Reserve Bank of Australia decided on Tuesday, February 18, to cut interest rates in the country for the first time in four years. The central bank lowered the main borrowing interest rate by 25 basis points from 4.35% to 4.10%, following nine consecutive meetings of holding rates steady. This cut aligned with widespread market expectations.
Short-term interest rates are considered one of the most important factors in evaluating the Australian dollar, as traders primarily look at most other indicators to predict how prices will change in the future. Generally, an interest rate hike is positive for the currency, and vice versa.
