SKY UPDATE | RBA’S UNEXPECTED JULY INTEREST RATE DECISION

01 August 2025

Whilst many pundits expected the RBA to cut interest rates at the July meeting, the RBA Board instead elected to keep the official cash target rate at 3.85%.

In the statement issued by the RBA, it was noted that inflation has moderated significantly since its peak in 2022. However, in the face of continued global and domestic uncertainty, the RBA Board voted 6 – 3 in favour of keeping rates steady.

The next RBA interest rate decision is expected on the 12th of August. Whilst many commentators are expecting a rate cut in August, that is anything but a foregone conclusion.

Over the last few years, the RBA Board has demonstrated a very cautious approach to cutting rates and remains very focussed on keeping a lid on inflation.

Given the current interest rate and broader economic environment, it is important to be proactive with your personal and business lending.

If you need assistance to review your lending facilities, or to shop-around for the most competitive rates, get in touch.

Sky Accountants Ballarat

Phone: 03 5332 8855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 5428 1400

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437

Sky Accountants Kilmore

Phone: 03 5782 2299

Office Address: 74B Sydney Street, Kilmore, Victoria 3764, Australia

Postal Address: PO Box 190 Kilmore Victoria 3764

Sky Accountants Bacchus Marsh

Phone: 03 4310 8000

Office Address: 66 Grant Street, Bacchus Marsh, Victoria 3340, Australia

Postal Address: 66 Grant Street, Bacchus Marsh, Victoria 3340, Australia