The Reserve Bank of Australia cut the cash rate target by 25 bps to 3.60% in August 2025, bringing total easing this year to 75 bps as underlying inflation trends toward the 2–3% target midpoint.

• Trimmed mean inflation slowed to 2.7% YoY in Q2 (from 2.9% in Q1), while headline inflation eased to 2.1% YoY, in line with forecasts.
• The unemployment rate averaged 4.2% in Q2, up from earlier lows, though underutilisation remains low and labour availability is still a constraint for some employers.
• Wage growth has eased from peak levels but remains elevated relative to weak productivity, keeping unit labour costs high.
• Global uncertainty remains elevated despite some clarity on US tariffs; trade policy is expected to weigh on global activity and Australian inflation.
• The Board cited risks to consumption growth and labour market conditions but remains prepared to adjust policy if international or domestic developments materially alter the outlook.
• Statement on Monetary Policy