On Tuesday afternoon, the Reserve Bank cut the official cash rate to 4.1 per cent.

It’s the first interest rate cut since 2020, after 13 consecutive hikes between May 2022 and November 2023.

Treasurer Jim Chalmers welcomed the cut, saying it's a relief “Australians need and deserve”.

But RBA governor Michelle Bullock has warned not to expect further cuts and given the impact on mortgage repayments will be modest, how much political mileage the government can get out of this remains to be seen. 

Today, managing editor of The Saturday Paper Emily Barrett on what the Reserve Bank’s decision tells us about the state of the economy and how it will shape the looming election campaign. 

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Guest: Managing editor of The Saturday Paper, Emily Barrett