Good afternoon. The Reserve Bank has cut the cash rate to 4.1% with a quarter-point reduction. The treasurer, Jim Chalmers, called it the rate relief millions of Australians “need and deserve”, and said the CEOs of all four major banks confirmed with him on Tuesday afternoon that they would pass on the “full benefits” of the decision.
The decrease is the first since the early days of the Covid-19 pandemic, and comes just in time for Labor to campaign on its economic credentials in a cost-of-living-focused election.
But while economists view the move as a sign that Australia’s central bankers believe inflation is being tamed, the RBA’s Michele Bullock says the decision “does not imply” further rate cuts are coming.
Top news
Man charged after allegedly harassing journalist Antoinette Lattouf after ABC radio stint
Nacc to investigate six referrals made by robodebt royal commission
Gerald Ridsdale, Australia’s most notorious paedophile priest, dies in jail
Alleged leader of cultlike ‘Zizian’ group arrested in Maryland
Matildas ‘can’t wait’ to see Sam Kerr back on pitch following court case and injury
In pictures
Divers have documented evidence of what conservationists say is widespread coral bleaching at the Ningaloo Reef off Western Australia’s north-west coast after a prolonged marine heatwave.
What they said …
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“I feel a bit weak. I’ve lost a lot of weight. I have a broken arm still, I think. My hand is not good.”
An unverified video uploaded to YouTube appears to show Australian Oscar Jenkins alive in Russian captivity, though weak and with a serious injury, following January reports of Jenkins’ death. The video appears to be intended to counter those reports.
The prime minister, Anthony Albanese, said on Tuesday he had seen the video and the Australian government continued to hold “serious concerns” for Jenkins’ welfare.
In numbers
A test held by the Australian Curriculum, Assessment and Reporting Authority (Acara) found Australian students’ understanding of civics education has fallen to a record low.
The example online test for year 10s veered into the philosophical, covering topics from multiculturalism to protest laws – but how does your knowledge stack up?
Before bed read
“Voters are sceptical about Dutton’s war on the public service. And America’s disembowelment is a cautionary tale,” writes Peter Lewis, off the back of the latest Guardian Essential poll, which showed the Labor and Coalition leaders neck-and-neck as the federal election looms.
Lewis notes the “genuine differences emerging around the scale, ambition and role of government, how it should be funded and by whom”, and parts on the warning that: “Taking the axe to government should be an informed choice.”
Daily word game
Today’s starter word is: BASS. You have five goes to get the longest word including the starter word. Play Wordiply.
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