RBA Cash Rate Announcement August 2025

The Reserve Bank of Australia (RBA) has delivered the third cash rate cut for 2025, with a 25 basis point cut bringing it down to 3.6 per cent. The announcement comes after inflation continued to ease.

Read today’s official statement on the RBA’s website.

The latest data from the Australian Bureau of Statistics shows the monthly Consumer Price Index (CPI) rose 1.9 per cent in the 12 months to June, down from a 2.1 per cent rise to May.

Last month, the RBA caught many economists off guard by holding firm on the cash rate, citing it needed more data before making its next move.

That data has now arrived, and it points to further easing in inflation.

For the June quarter, CPI fell from 2.4 per cent to 2.1 per cent. Underlying inflation, as represented by the trimmed mean, dropped from 2.9 per cent to 2.7 per cent - its lowest since December 2021.

With inflation now tracking within the RBA’s 2-3 per cent target band, economists believed there was a strong case for cutting interest rates in August, and the RBA agreed.

What’s more, there may be more relief on the way for mortgage holders. Experts say the fallout from the Trump administration’s tariffs could see interest rates cut further than previously anticipated. Economists expect that if inflation and economic growth continue on their current path, there is room for one or two more cuts this year.

Is your loan still competitive?

If you’ve been with the same lender for some time, why not see how your home loan compares to others?

Thinking of buying? With Australian property prices hitting new record highs last month, despite the RBA’s earlier decision to hold rates in July, acting sooner could give you an edge.

To chat through your finance options, get in touch today. Whether you’re reviewing your existing home loan or planning a purchase, I can help you find a loan tailored to your needs and goals.

The next RBA cash rate decision will be announced on 30 September.

Need help understanding what this announcement means for you? Contact us today.