The Reserve Bank's slashed the Official Cash Rate 50 basis points, to 2.5 percent

All six Monetary Policy Committee members agreed to the double cut.

Members considered the fall in GDP, our high unemployment, caution from households and businesses, and global uncertainty around tariffs and AI.

They expect inflation to return to normal by mid-next year.

But if inflation gets too high now, it could create a spiral, that would keep inflation higher, longer.