On 12 August 2025, the Reserve Bank of Australia cut the official cash rate by 0.25 percentage points to 3.60 %. The decision was widely expected as inflation continues to ease and the labour market shows signs of cooling.
Why the RBA lowered the cash rate in August 2025
In its statement, the RBA noted trimmed mean inflation of around 2.7 % and headline inflation of about 2.1 %, both trending toward its target band. Unemployment edged up to roughly 4.3 %, indicating a softer labour market. These factors gave policymakers room to provide stimulus without stoking inflation.
A lower cash rate means borrowing costs for mortgages and business loans decline. This cut signals the RBA’s intent to support sustainable economic growth while inflation remains under control.
Discuss your refinancing options
With rates still at historically low levels, now could be an opportune time to review your mortgage or investment strategy. If you have a home loan, consider whether refinancing could save you money or give you more flexibility. For personalised advice, speak to a Lend A Loan broker.
If you would like to learn more about refinancing your home loan or exploring your options, get in touch with a Lend A Loan broker today. Call us on 0488 220 222 or book a free consultation via our booking page: https://www.lendaloan.com.au/book-consultation/