RBA Acts Again, Cuts Cash Rate to 3.85 Percent

The RBA Board said inflation had ‘fallen substantially’ from its 2022 peak, with higher interest rates helping bring demand and supply into better alignment.

A bike courier rides past the entrance to the Reserve Bank of Australia (RBA) in Sydney's central business district on April 2, 2013. Greg Wood/AFP via Getty Images

The Reserve Bank of Australia has lowered the official cash rate by 25 basis points to 3.85 percent, marking its second cut in 2025.

The move, in line with market expectations, follows February’s reduction—the first since November 2020—after rates were held at 4.35 percent for over a year.