Australia’s central bank has reduced its benchmark interest rate by a quarter percentage point for a third time this year to 3.6%, with inflation tamed and economic growth stalling.

The Reserve Bank of Australia also downgraded its full-year GDP forecast for 2025 to 1.7% from 2.1%, saying that weaker-than-expected growth in public demand in early 2025 was unlikely to be offset through the rest of the year.