Reserve Bank of Australia Cuts Cash Rate to 3.60% in Third Reduction of 2025 Easing Cycle

The Reserve Bank of Australia cut its cash rate by 25 basis points to 3.60% at its August 2025 Monetary Policy Board meeting, extending the easing cycle that has been under way since the central bank began reducing rates earlier in the year. The decision, announced on the RBA's monetary policy page, brings the cumulative reduction across the three cuts of 2025 to 75 basis points.

Trimmed mean inflation fell to 2.7% and headline inflation to 2.1% in the June quarter, and staff forecast underlying inflation to moderate to around the midpoint of the 2% to 3% range.

INFLATION TARGET The central bank's mandate is expressed as a target band of 2% to 3%, with the Board aiming to return inflation to the 2.5% midpoint.

THIRD CUT OF 2025

The August decision is the third in a sequence that began earlier in 2025. The RBA has moved in increments of 25 basis points at each step.