Australia's central bank cut interest rates on Tuesday for the first time since the depths of the 2020 pandemic, saying progress had been made on inflation though it was still cautious about the outlook.

Wrapping up its February policy meeting, the Reserve Bank of Australia (RBA) cut its cash rate by 25 basis points to 4.10 percent, ending more than a year of steady policy.

It offered little guidance on whether it would ease again at the next board meeting in April.

Markets had wagered heavily on a quarter-point cut after core inflation surprised on the downside in the fourth quarter at 3.2 percent and looked certain to re-enter the RBA's 2-3 percent target band this quarter. (Reuters)