Australian Rate Cut Today No Surprise – Currency Thoughts
Australian Rate Cut Today No Surprise
August 12, 2025
The Reserve Bank of Australia’s interest rate cut, like those February and May, amounted to a quarter percentage point (25 basis points). At 3.60%, the new OCR level of 3.60% is its lowest since the start of May 2023. Also as before, the rate change was synchronized with a scheduled quarterly Monetary Policy Report, which reduced projected 2025 GDP growth by almost a half percentage point to 1.7%. “Trade policy developments are still expected to have an adverse effect on global economic activity, and there remains a risk that households and firms delay expenditure pending still greater clarity on the outlook.” Core inflation is back within the target band. Future changes in the OCR will be data-dependent.
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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