RBA Delivers Rate Relief: Cash Rate Falls to 3.60%

The Reserve Bank of Australia has reduced the official cash rate by 25 basis points to 3.60% in its August meeting, delivering the third cut this year. This move was widely expected, with falling inflation, a softer jobs market, and slowing economic growth all pointing toward easier monetary policy.

Governor Michele Bullock said the decision reflected “further progress in returning inflation to target while supporting sustainable economic growth.” With inflation now sitting at 2.4%, comfortably within the RBA’s 2–3% range, the Bank has more room to ease pressure on households and businesses.

This cut signals that the RBA sees the balance of risks shifting toward growth, even as housing markets remain heated and productivity growth lags.

Where We Are Right Now

Rates have fallen 75 basis points since the start of 2025, with markets already pricing in the possibility of further cuts by year’s end. The RBA’s move today reinforces expectations that we are now in a downward cycle, though it remains data-dependent.

Key drivers of the decision include:

• Inflation easing faster than expected and within target
• Unemployment edging up to 4.3%, pointing to softer labour demand
• Consumer spending slowing across retail and discretionary sectors
• Ongoing concerns about weak productivity growth and its impact on wages and income over time

The message from the RBA is clear: rates are heading lower, but the Bank will continue to watch for any signs of inflationary rebound before moving too aggressively.

What This Means for Borrowers

If you’ve been waiting for relief, here’s how today’s cut could affect you:

✅ Immediate Savings
Borrowers with a $500,000 mortgage could save around $74 a month, while a $700,000 mortgage could see over $90 in monthly reductions, provided lenders pass the cut through in full.

✅ More Buyer Activity
Cheaper finance is already drawing more buyers into the property market, which could lead to stronger competition and rising prices in some areas.

✅ Opportunities to Restructure
Lower rates open the door for refinancing balloon payments, consolidating business debt, or securing better pricing before the next wave of borrowers enters the market.

What We’re Seeing at Motorlend

We’re already helping clients take advantage of the changing rate environment with strategies such as:

• Leveraging unencumbered assets to secure sharper interest rates
• Accessing streamlined documentation options for self-employed borrowers
• Refinancing existing loans to reduce repayments and free up cash flow

Our lender panel remains competitive and willing to negotiate, particularly for borrowers with strong profiles, stable employment, or solid asset backing.

Ready to Move in a Lower Rate Environment?

This cut may be the start of a more extended easing cycle. Whether you’re looking to buy, upgrade, or improve your business cash flow, now is a smart time to explore your finance options before competition intensifies.

Motorlend’s team knows how to position your application for the most competitive results, across personal, vehicle, and business finance. Get in touch, and we’ll help you secure the right deal for your goals.

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