RBA cuts cash rate to 3.6%: Here's how it impacts you
On August 12, 2025, the Reserve Bank of Australia (RBA) dropped its cash rate to 3.6%—the third cut this year.
With inflation cooling off and unemployment ticking up, the RBA is hoping this move helps keep the economy steady.
If you've got a $500,000 mortgage, expect to save about $74 a month now—$272 in total so far this year.
RBA's decision explained
The RBA looked at signs like inflation finally landing in their target zone (2-3%), a small bump in business confidence, and early hints that people are spending more again.
But with unemployment rising to 4.2%, they're clearly worried about jobs and want to give things a boost.
What do the big banks say?
RBA Governor Michele Bullock will share more on what comes next later today.
Big banks like Commonwealth Bank and Westpac think more rate cuts could be coming for the rest of the year as the RBA tries to balance keeping inflation under control while supporting jobs and spending.