On August 13, 2025, the Reserve Bank of Australia (RBA) delivered a widely anticipated move — cutting the cash rate by 25 basis points to 3.60%. The decision reflects easing inflationary pressure and comes at a pivotal time for both homeowners and buyers.
The latest cash rate news — and why it matters
On 13 August 2025, the Reserve Bank of Australia (RBA) cut the cash rate by 0.25% to 3.60%. It’s a move that was widely expected, and it’s come at a time when inflation is finally starting to settle.
So, what does this mean if you already have a home loan — or if you’re thinking about buying?
Why did the RBA cut the rate?
The RBA’s decision follows new inflation data from the Australian Bureau of Statistics, which shows the annual Consumer Price Index (CPI) slowed to 3.1% in June — down slightly from 3.2% in May.
Core inflation (which strips out more volatile items like fuel and food) dropped too. The trimmed mean inflation fell to 2.9%, sitting nicely inside the RBA’s 2–3% target band for the first time since 2021.
That gave the RBA confidence to ease the rate — supporting borrowers without losing sight of longer-term inflation risks.
What this means if you have a home loan
If you’re already repaying a home loan, now’s a good time to take stock. Lenders often adjust their rates after an RBA announcement, so if your rate hasn’t moved in a while, there might be better value out there.
Even a 0.25% drop could mean noticeable monthly savings, depending on your loan size. That could free up cash for other priorities — or help you pay your loan off faster.
We can help you review your loan and see if there’s a more competitive option available. A quick check today could lead to long-term savings.
Is your home loan still working for you? Let’s find out.
Thinking about buying?
If you’re planning to buy, this change might work in your favour. Property prices have stayed solid — even rising slightly in some areas — despite the ups and downs in interest rates.
With borrowing costs easing, we may start to see a lift in buyer confidence.
Here’s a quick snapshot of recent market data:
| State | Auctions / Clearance Rate | Private Sale | Monthly Home Value Change |
|---|---|---|---|
| VIC | 686 / 70% | 1,266 | ▲ 0.4% |
| NSW | 699 / 62% | 1,555 | ▲ 0.8% |
| ACT | 93 / 79% | 53 | ▲ 0.6% |
| QLD | 155 / 49% | 1,115 | ▲ 0.7% |
| WA | 7 / 29% | 549 | ▲ 0.9% |
| NT | 2 / 50% | 21 | ▲ 2.9% |
| TAS | 0 / –% | 149 | ▼ 0.1% |
| SA | 94 / 69% | 238 | ▲ 0.7% |
The takeaway? While property remains a big investment, this rate cut could boost your borrowing power — and give you a bit more breathing room.
What’s next?
The RBA’s next decision is due on 30 September. If inflation continues to cool, some economists think another cut could follow before year’s end.
That said, nothing is set in stone — and the best strategy is to make decisions based on where you are right now.
On 13 August 2025, the Reserve Bank of Australia (RBA) cut the cash rate by 0.25 percentage points, bringing it down to 3.60%.
The RBA made the decision after new inflation data showed the annual Consumer Price Index (CPI) fell to 3.1% in June, down from 3.2% in May. Core inflation, which excludes more volatile items, dropped to 2.9%, placing it within the RBA’s 2–3% target range for the first time since 2021.
For borrowers, a 0.25% reduction could mean lower monthly repayments, depending on the loan size. This may free up funds for other expenses or help pay down the mortgage faster. It’s also a good time for homeowners to review their current loan to see if better rates are available.
Lower borrowing costs could increase buyer confidence and purchasing power. Despite recent fluctuations in interest rates, property prices have remained strong and even increased slightly in several states, which might encourage more buyers to enter the market.
The next decision is scheduled for 30 September 2025. If inflation continues to ease, some economists predict another cut could occur before the end of the year, although this is not guaranteed.
Let’s talk about your next step
Whether you’re looking to refinance, planning your next property purchase, or just want to understand your options — we’re here to help.
At Borro, we specialise in clear, honest lending advice tailored to your goals. No sales pressure. No confusing fine print. Just support to help you make smarter financial choices.
