Particle.news
Download on the App Store
33 ARTICLES
·
last mo.

RBA Cuts Cash Rate to 3.6% and Flags Data-Dependent Easing

Against a backdrop of cooling inflation paired with a softer labour market, the bank downgraded its growth outlook in favour of a meeting-by-meeting policy path.

Image
The exterior of the Federal Reserve building is seen in Washington, D.C., U.S., June 14, 2022. REUTERS/Sarah Silbiger/File Photo
People cross a bridge near the Sydney Tower Eye in the Central Business District (CBD), Sydney, Australia, July 9, 2025. REUTERS/Hollie Adams/File Photo
U.S. Treasury Secretary Scott Bessent attends a meeting between President Donald Trump and Philippine President Ferdinand Marcos Jr., in the Oval Office at the White House in Washington, D.C., U.S., July 22, 2025. REUTERS/Kent Nishimura/File Photo

Overview

  • The Reserve Bank unanimously cut its official cash rate by 25 basis points to 3.60%, marking the third reduction of 2025.
  • Updated forecasts trimmed the assumed trend productivity growth from 1.0% to about 0.7%, lowering medium-term GDP and living-standards projections.
  • Headline inflation eased to 2.1% in the June quarter and the trimmed mean fell to 2.7%, while the unemployment rate rose to 4.3%.
  • Commonwealth Bank, Westpac, ANZ and NAB will pass the full 0.25% cut through to variable home loan customers from late August.
  • Swaps markets price further rate reductions to near 3.1% by early 2026, though the RBA will remain strictly data-dependent on future moves.