Australia's central bank is cautious about cutting rates further given cost pressures in a hot labour market, but it will respond if inflation slows more quickly than expected, senior officials said on Friday.

An interest rate cut shows Australia is pastthe worst on inflation, says treasurer:: Canberra, AustraliaJim Chalmers/Australian Treasurer“This is very welcome news for millions of Australians. This is the rate relief that Australians need and deserve.

The Reserve Bank of Australia on Tuesday cut benchmark interest rates for the first time in over four years, joining ranks with other major global central banks, as softening inflation allows room for easing policy.