The Reserve Bank of Australia has cut its benchmark interest rate from 4.35% to 4.1%, marking its first reduction since November 2020. This move was prompted by a notable decline in inflation, which has dropped to 2.4%. While the cut is welcomed by the government, RBA Governor Michele Bullock cautioned against expecting further cuts soon, emphasizing the need to assess global economic uncertainties and domestic economic conditions carefully. The reduction aims to alleviate financial pressure on households faced with high borrowing costs and is part of ongoing efforts to manage inflation within target levels.