AsianFin -- The Reserve Bank of Australia (RBA) on Tuesday cut benchmark interest rates for the first time in over four years, aligning with other major global central banks as softening inflation provides room for policy easing.

The RBA lowered rates by 25 basis points to 4.10%. This is the first rate cut since November 2020 when the central bank brought its key rate to a record low amid the pandemic - driven economic slowdown.

Since November 2023, the RBA had maintained its policy rate at 4.35% following a prolonged period of 13 rate hikes aimed at curbing domestic inflation.

The decision was in line with market expectations, as government bonds had rallied in recent weeks on anticipation of a rate cut. Yields on Australian 10 - year government bonds fell nearly 20 basis points since Jan. 13 to 4.450% on Tuesday, according to LSEG data.

The RBA has been lagging behind other major global central banks that began their easing cycle late last year.