Australia’s central bank cut interest rates for a second time, citing easing inflation risks, but warned of ongoing shocks to the global economy from the U.S. trade policies and a deteriorating geopolitical environment.

Australia’s central bank has reduced its benchmark interest by a quarter percentage point for a second time this year to 3.85% after inflation fell within a target range.

The average Aussie household will save more than $2500 annually after the Reserve Bank of Australia delivered its second interest rate cut of 2025.