Last Tuesday, the Reserve Bank of Australia delivered its first rate cut in over four years.

For many, the tumultuous years of rate rises have felt like a cost-of-living gauntlet. Inflation has driven up the cost of household bills, groceries and housing, with families slashing their spending to make ends meet.

Despite the RBA’s independence from government, the rate cut falls under the shadow of a looming election, and both major parties are using the decision to pitch policies that ease the cost-of-living crisis.

On this podcast, host Kat Clay interviews Grattan experts Trent Wiltshire and Jessica Geraghty, on the RBA’s decision, what it means for the election, and Australia’s economic outlook.

Helpful links:

Statement by the Reserve Bank Board: Monetary Policy Decision https://www.rba.gov.au/media-releases/2025/mr-25-03.html

Australia's Productivity Pitch: https://engage.pc.gov.au/projects/productivity-pitch/surveys/idea/survey/your-idea#submissions