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.