See every side of every news story
Published loading...Updated

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.
Insights by Ground AI
Does this summary seem wrong?

13 Articles

Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 50% of the sources lean Right
50% Right

Factuality 

To view factuality data please Upgrade to Premium

Ownership

To view ownership data please Upgrade to Vantage

ABC Australia broke the news in Australia on Monday, August 11, 2025.
Sources are mostly out of (0)