Key Metrics
20.35
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2025-08-12
Key Impacts
Positive Impacts (10)
Negative Impacts (1)
Event Overview
Central bank easing monetary policy through incremental rate reductions, reflecting efforts to balance economic stimulus with inflation management. Cumulative cuts totaling 75 basis points signal shifting priorities in response to evolving economic conditions, potentially impacting housing markets, consumer borrowing, and currency valuation.
Collect Records
Reserve Bank of Australia Cuts Interest Rate to 3.6% in Third Reduction This Year
On Tuesday, the Reserve Bank of Australia (RBA) reduced its key interest rate by 25 basis points to 3.6%, marking the third cut this year and bringing the rate to its lowest level since April 2023. The decision was unanimous, contributing to a cumulative 75 basis points of easing in the current monetary policy cycle.
RBA Governor Michele Bullock signaled that a couple more interest rate cuts may be required to achieve the RBA’s latest forecasts, which anticipate the jobless rate and core inflation holding at their current levels and economic growth picking up to its 2% potential rate by 2026.
Following the announcement, the Australian Securities Exchange (ASX 200) closed 0.4% higher at a record 8,800 points, while the Australian dollar fell against the US dollar.
The RBA’s rate cut is intended to provide relief for home loan borrowers, especially after the bank’s unexpected “on hold” decision in July. The latest move aligns with its strategy to support economic growth amid slowing inflation pressures.
During post-decision coverage, independent economist Nicky Hutley and other analysts provided commentary on the rate move and its implications. Governor Bullock’s press conference and statements from the Treasurer were also covered in the media, outlining the central bank’s outlook and rationale for further easing if necessary.