12/08/2025
The Reserve Bank of Australia (RBA) has delivered welcome news for borrowers, cutting the official cash rate by 25 basis points to 3.60%. This marks the third rate cut in 2025, following a period of slowing economic growth and easing inflation pressures. The decision is part of the RBA’s ongoing efforts to support the economy and keep inflation within its target range.
Inflation has now eased to 2.1% annually, with core measures such as the trimmed mean sitting at 2.4% – comfortably within the RBA’s 2–3% target. However, rising unemployment, which reached 4.3% in June, has been a concern. Softer consumer spending and domestic demand have prompted the RBA to take further action to encourage economic activity.
For homeowners, the news is set to bring some relief. All four major banks – CBA, NAB, Westpac, and ANZ – along with Macquarie Bank, have confirmed they will pass on the full rate cut to variable-rate home loan customers. For a borrower with a $700,000 mortgage, this could mean saving around $1,100 per year, assuming the full reduction is applied.
The RBA has also flagged broader economic challenges ahead, including slow productivity growth and potential pressure on living standards. While the latest cut is designed to provide short-term relief, policymakers have warned that sustained economic improvement will require more than just monetary easing. Markets are already speculating on the possibility of further cuts, with some forecasts suggesting the cash rate could fall to 2.9% by the end of 2026 if conditions warrant.
For Perth’s property market, lower interest rates could help keep buyer demand steady, especially in a climate of low housing supply. However, with competition still strong, buyers and sellers alike will need to keep an eye on how these changes flow through to borrowing capacity and affordability.
If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848.
