August 12, 2025

NAB Monetary Policy Update – 12 August 2025

As anticipated, the RBA delivers a 25bp easing

Key points

  • The RBA cut the cash rate by 25bp as expected, encouraged by a further decline in core inflation and a slight easing in labour market conditions.
  • There were no changes to the unemployment rate or inflation forecasts in the August Statement on Monetary Policy.
  • However, the RBA have downgraded their longer-term productivity assumptions and now see Australian trend GDP growth ~2%.
  • The RBA Governor delivered little in the way of forward guidance today; NAB continues to expect 25bp cuts in November and February.

For further details, please see the NAB Monetary Policy Update (12 August 2025)