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)