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Cash Rate May Drop to Lowest Since February

8/8/2025

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Summary

Story summary

The RBA Rate Indicator indicates a 51% likelihood of the cash rate decreasing to 3.35%.
If this occurs, it will mark the lowest rate since February 2023.
Major banks anticipate a 25-basis-point reduction.
The RBA's Monetary Policy Board has shown unpredictability in 2025.
In July, the Board maintained the rate at 3.85% due to inflation worries.

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Story summary

The RBA Rate Indicator indicates a 51% likelihood of the cash rate decreasing to 3.35%.
If this occurs, it will mark the lowest rate since February 2023.
Major banks anticipate a 25-basis-point reduction.
The RBA's Monetary Policy Board has shown unpredictability in 2025.
In July, the Board maintained the rate at 3.85% due to inflation worries.