Australia's central bank cut rates for the first time in more than four years on Tuesday but warned it was too early to declare victory over inflation and was cautious about the prospects of further easing.

The government-appointed Reserve Bank of Australia board begrudgingly cut rates to try to ease the political crisis produced by the widespread working-class hostility that has developed to the Labor government.

No sooner had the Reserve Bank cut interest rates did governor Michele Bullock find herself being asked the obvious question — should households expect more?