RBA reduces interest rates, but don’t hold your breath for too much more this year | Nicki Hutley

The Reserve Bank of Australia announced a long-awaited interest rate cut this afternoon .

The cut takes the official cash rate from 4.35% to 4.1% .

The four major banks have been quick to confirm that they will pass on the “full benefits” of the decision.

The path of rates in the year ahead will depend on the path of the economy and inflation.

Financial markets expect rates to head slowly towards 3.5% this year .