The Reserve Bank of Australia (RBA) has today reduced the official cash rate by 0.25 percentage points, a move widely anticipated by economists and market watchers. The current cash rate now sits at 3.60%.
This decision follows several key indicators pointing to a cooling economy and easing inflationary pressures for the June 2025 quarter:
- Inflation: The RBA’s preferred measures show trimmed mean inflation at 2.7% and headline CPI at 2.1%, both within the Bank’s 2-3% target band.
- Employment: Unemployment edged up to 4.3%, indicating a slightly softer labour market.
Together, these indicators suggest economic momentum is slowing, giving the RBA room to adjust policy in support of sustainable growth while keeping inflation within target.
Today’s decision highlights the importance of staying up to date and understanding how these changes may affect your current loan, future borrowing plans, or investment opportunities.
