RBA cuts rates as inflation slows but still cautious on outlook
By Frank Prenesti
Date: Tuesday 12 Aug 2025
(Sharecast News) - The Reserve Bank of Australia on Tuesday cut its main cash rate by 25 basis points to 3.60% - its lowest level in two years - as inflation slowed and the jobs market slackened.
After a two-day policy meeting, the central bank said updated forecasts indicated core inflation, which strips out volatile items such as food and energy, would ease to the middle of its 2% - 3% target range.
"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 central bank's board said in a statement on Tuesday.
However, it added that it "remains cautious about the outlook, particularly given the heightened level of uncertainty about both aggregate demand and potential supply".
Reporting by Frank Prenesti for Sharecast.com
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