<h1>Australia's Central Bank Cuts Interest Rate to 4.1% Amid Cooling Inflation, First Reduction Since 2020</h1> Australia's central bank has reduced its benchmark interest rate for the first time since October 2020, lowering it by a quarter percentage point to 4.1% due to cooling inflation. The decision followed a modest 0.2% inflation rise in the December quarter and a 2.4% increase for 2024, down from a peak of 7.8% two years prior. The bank aims to maintain inflation within a 2-3% target range. Unemployment remained low at 4% in December. This rate cut is favorable for the current government, which faces upcoming elections by May 17.