Overview

• The Reserve Bank of Australia reduced the official cash rate by 25 basis points to 3.85%, the first time below 4% in two years.
• This marks the second rate cut this year, following a February reduction, as inflation metrics now sit within the RBA's 2–3% target band.
• All major banks, including Commonwealth Bank, NAB, ANZ, and Westpac, have committed to passing the full rate cut to variable-rate mortgage holders.
• Borrowers with a $600,000 loan could save approximately $91 per month in repayments, according to financial analysts.
• The decision reflects global economic uncertainty, including U.S. tariff tensions, and aims to alleviate financial pressure on Australian households.