FX.co ★ RBA Cuts Interest Rates to 3.60% in First Adjustment Since July 2025

In a surprising move, the Reserve Bank of Australia (RBA) announced a cut in the interest rate to 3.60% this August, down from the previous rate of 3.85% set in July 2025. The adjustment marks the first rate change since last month and indicates the central bank's strategic response to emerging economic conditions.

The decision to lower the interest rate comes amidst an environment of evolving economic challenges, as the RBA aims to stimulate growth and foster economic stability. This reduction in rates is expected to provide relief to borrowers and businesses facing financial pressures, while encouraging increased investment and consumer spending.

This announcement, updated on August 12, 2025, highlights the RBA's commitment to navigating fluctuating economic landscapes with decisive policy measures. Analysts and market participants will be closely monitoring the effects of this rate change on Australia's economic activity in the coming months.