Banks Drive Aussie Shares to Record High as RBA Cuts Rates for Third Time in 2025
The Reserve Bank of Australia cut the cash rate by 0.25 percentage points to support the economy amid cooling growth, lifting the ASX 200 by 0.41% and setting a new record high.
- On August 12, 2025, the Reserve Bank of Australia lowered the cash rate by a quarter of a percentage point to 3.60%, which helped push the ASX 200 to a new peak of 8,880.8 points.
- The board made a unanimous decision amid easing inflation, slightly softer labor market conditions, and ongoing uncertainty from trade policy and global risks.
- Rate-Sensitive financial stocks and major miners gained, while the RBA forecast inflation to moderate near 2.7% and emphasized cautious assessment of data and risks.
- Interest rate derivatives showed a 97.3% chance of this cut, and economists expect further gradual easing to about 2.85%, with markets viewing it as positive for credit and consumer sentiment.
- The rate cut signals the start of a gradual easing cycle amid slower growth recovery, while Australia’s housing affordability challenges and global tariff uncertainties persist.
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RBA Lowers Rates, Aussie Dips Lower, US CPI Expected to Rise - Action Forex
The Australian dollar is lower on Tuesday. In the European session, AUD/USD is trading at 0.6494, down 0.29% on the day. RBA cuts rates to 3.60% The Reserve Bank of Australia lowered the cash rate by a quarter-point on Tuesday in a unanimous decision, bringing the cash rate to 3.60%. This is the lowest level […] The post RBA Lowers Rates, Aussie Dips Lower, US CPI Expected to Rise appeared first on Action Forex.
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Total News Sources13
Leaning Left1Leaning Right2Center1Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 25%
C 25%
R 50%
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