© 2021 Greek Community Tribune All Rights Reserved
Reserve Bank cuts interest rates
by a quarter of a percent
September 2025 The Reserve Bank has delivered its third interest rate cut of 2025, with a 0.25 percentage point reduction at its August board meeting. That takes the cash rate to 3.6 per cent for the first time since April 2023. The move had been overwhelmingly anticipated by financial markets and economists after the surprise decision to hold rates steady in July. It was a unanimous decision by board, which had been divided last month. Last week’s cut follows a further easing of inflation in the June quarter, which RBA governor Michele Bullock last month highlighted as the crucial piece of data the monetary policy board was waiting for. “Updated staff forecasts for the August meeting suggest that underlying inflation will continue to moderate to around the midpoint of the 2–3 per cent range, with the cash rate assumed to follow a gradual easing path,” the post-meeting statement read. The inflation pull back, alongside “labour market conditions easing slightly, as expected”, led the board to deem “further easing of monetary policy was appropriate”. “This takes the decline in the cash rate since the beginning of the year to 75 basis points,” the RBA board noted in its statement. The central bank cut interest rates at its February and May board meetings. Before that, the RBA’s cash rate had sat at 4.35 per cent since November 2023, after a series of 13 rate hikes, beginning in May 2022. Treasurer Jim Chalmers described it as a “very welcome relief for millions of Australians”. “It means the lowest interest rates for more than two years,” he said shortly after the decision. “It reflects the substantial and sustained progress we’ve made on inflation in a volatile and uncertain global environment,” the treasurer noted in a statement. Cash rate at 3.6pc, further rate cuts expected The Australian dollar fell following the decision, dipping just below 65 US cents as Ms Bullock addressed a media conference in Sydney. The RBA governor indicated the board was prepared to cut interest rates further if necessary. Some lenders were quick off the mark to confirm they would be passing on the interest rate cut to home loan customers, with Macquarie, Commonwealth Bank, Westpac, ANZ, NAB and AMP among the first handful of announcements.
Greek Tribune
Adelaide, South Australia
© 2021 Greek Community Tribune All Rights Reserved
Reserve Bank cuts interest rates
by a quarter of a percent
September 2025 The Reserve Bank has delivered its third interest rate cut of 2025, with a 0.25 percentage point reduction at its August board meeting. That takes the cash rate to 3.6 per cent for the first time since April 2023. The move had been overwhelmingly anticipated by financial markets and economists after the surprise decision to hold rates steady in July. It was a unanimous decision by board, which had been divided last month. Last week’s cut follows a further easing of inflation in the June quarter, which RBA governor Michele Bullock last month highlighted as the crucial piece of data the monetary policy board was waiting for. “Updated staff forecasts for the August meeting suggest that underlying inflation will continue to moderate to around the midpoint of the 2–3 per cent range, with the cash rate assumed to follow a gradual easing path,” the post-meeting statement read. The inflation pull back, alongside “labour market conditions easing slightly, as expected”, led the board to deem “further easing of monetary policy was appropriate”. “This takes the decline in the cash rate since the beginning of the year to 75 basis points,” the RBA board noted in its statement. The central bank cut interest rates at its February and May board meetings. Before that, the RBA’s cash rate had sat at 4.35 per cent since November 2023, after a series of 13 rate hikes, beginning in May 2022. Treasurer Jim Chalmers described it as a “very welcome relief for millions of Australians”. “It means the lowest interest rates for more than two years,” he said shortly after the decision. “It reflects the substantial and sustained progress we’ve made on inflation in a volatile and uncertain global environment,” the treasurer noted in a statement. Cash rate at 3.6pc, further rate cuts expected The Australian dollar fell following the decision, dipping just below 65 US cents as Ms Bullock addressed a media conference in Sydney. The RBA governor indicated the board was prepared to cut interest rates further if necessary. Some lenders were quick off the mark to confirm they would be passing on the interest rate cut to home loan customers, with Macquarie, Commonwealth Bank, Westpac, ANZ, NAB and AMP among the first handful of announcements.
Greek Tribune
Adelaide, South Australia