Reducing its official cash rate by 25 basis points today, the Reserve Bank of Australia lowered it from 3.85% to 3.60%. All members of the Monetary Policy Board unanimously supported the choice, which was made public on August 12, 2025, therefore highlighting a shared belief that monetary policy should be eased.
Australia's inflation rate slowed to 2.1%, only over the RBA's 2–3% target range, and the unemployment rate reached 4.3%, the highest in 3 ½ years. Soft economic momentum and reduced pricing pressures are reflected in these indicators; therefore, the bank is justified in cutting borrowing rates to promote job and growth.
In its most recent predictions, the RBA indicated an ongoing softening bias. Most major Australian banks now expect another rate decrease, projecting the cash rate could soften to about 3.35% by December 2025 if inflation keeps on moderating and labour market conditions remain shaky.


Bank of Japan Officials Signal Continued Interest Rate Hikes Amid Inflation Concerns
RBA Raises Cash Rate to 4.10% in Closest Vote Since Transparent Voting Began
Taiwan Central Bank Expected to Hold Interest Rates Steady Through 2027
Global Central Banks Hold Rates Amid Iran War-Driven Energy Price Surge
Bank of Japan Eyes April Rate Hike Despite Inflation Dip, ING Says
Japan's BOJ Independence Under Fire as PM Takaichi's Rate Stance Draws Political Heat
Federal Reserve Balance Sheet Reduction: Brookings Research Outlines Possible Path Forward
Fed Holds Rates Steady as Middle East Conflict Clouds Inflation Outlook
RBA Set to Hike Rates Again Amid Inflation Surge and Global Uncertainty
Trump Tariffs Show Minimal Economic Impact but Boost Federal Revenue, Study Finds
RBA Rate Decision: Deputy Governor Signals Genuine Debate Ahead of March Meeting 



