Better late than never: RBA makes August decision to cut interest rates

It appears the RBA Board has received the message that the economy needs more than ‘hopes and prayers’, but rather, active policy decisions to ratchet down the cash rate over the coming months to shore up employment, investment and spending, writes Brendan Rynne.

KPMG was one of the many market economists that had predicted the Reserve Bank of Australia (RBA) Board would drop the cash rate by 25 basis points at its last meeting in early July, but was surprised when it took the conservative option of keeping the cash rate on hold on the basis that it wanted to see the full quarter consumer price index (CPI) results before it made any decision to drop rates further. What surprised economists the most was the rationale put forward to keeping rates on ho...

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Authors: Brendan Rynne

Published Date: 14 August 2025