Key points

• The RBA cut by 25bps to 3.85%
• Final sentence of the post meeting statement now focussed on both sides of the mandate
• Forecast revisions are modest but supportive of more comfort moving away from restrictive policy than the February outlook
• NAB now expects a 25bp rate cut in July, August and November for a terminal rate of 3.1%

For further details, please see the NAB Monetary Policy Update (20 May 2025)