The Reserve Bank of Australia has lowered the cash rate by 25 basis points to 3.60%, citing continued moderation in inflation and a slightly softer labour market.
Inflation has fallen substantially since its 2022 peak, with the June quarter’s trimmed mean reading at 2.7% and headline inflation at 2.1% – both broadly in line with earlier forecasts. The RBA expects underlying inflation to settle near the midpoint of its 2–3% target range as monetary policy continues its gradual easing path.
Globally, economic uncertainty remains elevated, though fears of extreme trade policy shocks have eased somewhat. Domestically, household incomes are improving, private demand is recovering, and labour market conditions – while still relatively tight – have eased modestly. The RBA acknowledged lingering uncertainties, including how households and businesses will respond to changing economic conditions and the lagged effects of earlier policy moves.
With this latest cut, the RBA has reduced rates by a total of 75 basis points so far this year. The Board reaffirmed its commitment to maintaining price stability and full employment, while keeping policy settings flexible in case of further international or domestic shocks.
Possible Implications for the Local Housing Market
For buyers and sellers in the 2508 and 2515 postcodes – which include Stanwell Park, Coalcliff, Thirroul, and surrounding coastal villages – lower interest rates may boost confidence and borrowing capacity. This could lead to stronger demand, particularly from Sydney-based buyers seeking lifestyle moves. Sellers may benefit from renewed competition, but with global uncertainties still in play, the pace and strength of any housing upswing will depend on buyer sentiment and broader economic conditions.
About the writer
Ian Pepper has had a long and distinguished career as a finance and real estate professional. Originally trained as a Chartered Accountant in 1995, Ian worked in Sydney and London. He has an MBA from Macquarie Graduate School of Management and now sells real estate with Pepper Real Estate Agency HQ. Ian also volunteers with local community groups including school P&Cs, sporting clubs and business chambers.
Ian supports local news with regular advertising in the Illawarra Flame.