iscoverFollowing last month’s shock hold, find out, in this special announcement brought to you by Accounting Home Loans, if the Reserve Bank of Australia has decided to raise, hold, or cut interest rates at its second meeting of the new financial year.
RBA reveals August 2025 cash rate call
12 August 2025
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8 minute read
In its July meeting, the board of the Reserve Bank of Australia decided to hold the cash rate at 3.85 per cent. Today, it has cut the cash rate by 0.25 per cent, bringing it to 3.6 per cent.
In a statement, the board said: "Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and potential supply closer towards balance. In the June quarter, trimmed mean inflation over the year fell to 2.7 per cent, broadly as expected in May."
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"Headline inflation, which has partly been affected by temporary cost of living relief measures, was 2.1 per cent, also as forecast. Updated staff forecasts for the August meeting suggest that underlying inflation will continue to moderate to around the midpoint of the 2–3 per cent range, with the cash rate assumed to follow a gradual easing path," it said.
In conversation with Accountants Daily, Accounting Home Loans director of sales Cullen Haynes said that the rate cut is welcome news for mortgage holders and prospective buyers.
“As banks pass on the rate cuts, those on a variable home loan set up will see their monthly interest repayments decrease. If you haven’t received a reduction in your repayments from the May cash rate cut, make sure to get in contact with your lender or broker as soon as possible,” he said.
“With three rate cuts now in place, it’s an ideal time to review your home loan and explore refinancing. The current average interest rate range for owner-occupied loans is now 5.0 per cent to 5.9 per cent, and there may be something better for you than your current product in the market.”
If you’re considering purchasing a property, Haynes continued, now is a good time to get your pre-approval in place.
“With three rate cuts, your borrowing power may have increased, potentially expanding your options in the market. Having pre-approval ready ensures you can move quickly when you find the right property,” he said.
“Accounting professionals can access certain market advantages, such as home loans with just a 10 per cent deposit and waived Lender’s Mortgage Insurance. These benefits can make entering the property market more attainable and realistic for the cohort.
“It’s best to speak to a specialist broker for accountants, such as Accounting Home Loans, to find out what’s possible for you. Get in touch today.”
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