RBA Rate Decision

The RBA Board has delivered another cash rate cut.

Download Full Report Here: https://media.marketnews.com/RBA_Review_August_2025_23558b4624.pdf EXECUTIVE SUMMARY: * The RBA made the unanimous decision to cut rates 25bp to 3.60%, as expected, with a larger move was not discussed. * Around another 75bp of easing is assumed in the updated staff forecasts which results in underlying inflation at around the 2.5% band mid-point from H2 2025. Thus, more rate cuts are likely going forward dependent on the data developing broadly as the RBA expects * Governor Bullock said that the Board continues to take things at a "measured pace". While, she didn't rule out "back-to-back cuts", the next rate reduction is likely to again coincide with the Statement on Monetary Policy, which will be on November 4 * RBA-dated OIS pricing has a 25bp rate cut in September is given a 37% probability, with a cumulative 52bps of easing priced by year-end.