Particle.news
Download on the App Store
58 ARTICLES
·
yesterday

RBA Cuts Cash Rate to 3.6%, Emphasises Data-Dependent Outlook

Inflation’s return to the 2–3% target band prompted the RBA to deem the rate cut appropriate; officials emphasised that further easing will follow only after fresh data.

Image
A pedestrian is reflected in a wall of the Reserve Bank of Australia (RBA) head office in central Sydney, Australia, October 3, 2016. Picture taken October 3, 2016. REUTERS/David Gray/File Photo
FILE - People arrive at the Reserve Bank of Australia in Sydney, Dec. 6, 2022. (AP Photo/Rick Rycroft, File)

Overview

  • The Reserve Bank unanimously trimmed its cash rate by 25 basis points to 3.6% on August 12, marking its third cut of 2025 after a surprise July pause.
  • Headline CPI fell to 2.1% and the trimmed mean slowed to 2.7%, bringing inflation back within the RBA’s target range.
  • If banks pass on the full reduction, a household with a $500,000 mortgage could save around $70–$90 per month.
  • Officials underscored that any future rate moves will hinge on upcoming CPI releases and labour-market data.
  • Analysts caution that lower borrowing costs may boost homebuying and drive property prices higher, requiring vigilant monitoring.