The Reserve Bank of Australia lowered its cash rate target by 25 basis points to 3.85%, in line with expectations.

The Reserve Bank of Australia stated in its post-May policy meeting that "the board judged that the risks to inflation have become more balanced. Inflation is within the target range, and the upside risks seem to have diminished. It is expected that international developments will put pressure on the economy. Given that inflation is expected to remain around the target level, the board therefore judged that it is appropriate to ease monetary policy at this meeting." "The board assesses that this move will relax the restrictiveness of monetary policy. However, the board remains cautious about the outlook, particularly considering the increased uncertainties surrounding both total demand and total supply."