Overview

• The board lowered the cash rate by 25 basis points to 3.60% at its Aug. 11–12 meeting.
• Minutes state some further reduction in the cash rate is likely over the coming year, with decisions taken meeting by meeting.
• Policymakers cited a labor market that is still a little tight, inflation nearer the midpoint, and recovering private demand as reasons for caution.
• The document leaves scope for either a gradual path or a quicker series of cuts if the jobs outlook weakens or global risks shift.
• Money markets put less than a one‑third chance on a Sept. 30 move, and CreditorWatch reports insolvencies remained elevated in July.