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Economic Buzz: Australia cuts key interest rate by 25 bps
12-Aug-2025 11:10
The Reserve Bank of Australia reduced its benchmark interest rate by a quarter-point on Tuesday as underlying inflation continued to soften and labor conditions eased slightly.

The board decided to lower the cash rate target by 25 basis points to 3.60 percent. Previously, the bank had reduced the rate by 25 basis points each in May and February.

With underlying inflation continuing to decline back towards the midpoint of the 2-3 per cent range and labour market conditions easing slightly, as expected, the Board judged that a further easing of monetary policy was appropriate, the bank said in a statement.

The board said that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia.

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