RBA cuts interest rates.

RBA Cuts Cash Rate to 3.60% – Here’s What You Need to Know

The Reserve Bank of Australia (RBA) has today lowered the official cash rate by 0.25 percentage points, taking it from 3.85% to 3.60%. This is the third rate cut in 2025, following earlier reductions in February and May.

The decision comes as the latest economic data shows:

• Inflation is at 2.7%, and headline CPI is 2.1% which are both within the RBA’s 2–3% target range.

• Employment: The unemployment rate rose slightly to 4.3% in June, indicating slower jobs growth.

• Economic activity: Consumer spending growth has moderated, and housing market activity has picked up in some regions.

A lower cash rate reduces borrowing costs for households and businesses. If lenders pass on the cut, it can mean lower home loan interest rates and improved borrowing capacity. However, not all lenders move rates in the same way or at the same speed, so the actual benefit will depend on your specific loan and lender.

Mortgage brokers play a key role in this environment, we monitoring lender responses, comparing options across the market, and ensuring borrowers can take full advantage of changing conditions. With three cuts already this year, now is a great time to review your loan and ensure it remains competitive.

If you would like more information on what this means for you, contact us today.