The Reserve Bank has followed through on its widely anticipated interest rate cut, announcing a 0.25 percentage point reduction to 3.6 per cent.

But when the latest quarterly data was released last month, it was about as good as anyone could have hoped for: headline inflation slowed to 2.1 per cent, right at the bottom of the RBA's target range, and its lowest since March 2021.

Australia’s central bank trimmed its key interest rate for a third time this year, while signaling future policy decisions will hinge on incoming data.