RBA Cuts Rates Again—What It Means for Commercial Borrowers
The Reserve Bank of Australia (RBA) has lowered the cash rate by 25 basis points, bringing it down to 3.60%. This marks the third cut this year, totaling a 75-point drop since January. The move reflects the RBA’s continued effort to support economic stability amid easing inflation and global uncertainty.
Inflation Eases, But Uncertainty Lingers
Trimmed mean inflation now sits at 2.7%, right within the RBA’s target range. Headline inflation is even lower at 2.1%, thanks in part to temporary cost-of-living relief. But the global outlook remains murky, with trade tensions and cautious consumer spending still weighing on growth.
Domestically, demand is slowly recovering, and real household incomes are improving. However, businesses in some sectors are still struggling to pass on rising costs, and productivity growth remains weak.
What This Means for Commercial BorrowersFor business owners, this rate cut could mean more breathing room. Eased financial conditions may improve access to capital, making it a good time to reassess your lending strategy. Whether you're planning to expand, refinance, or invest in new assets, lower rates could enhance your borrowing power.
Labour market conditions are softening slightly, but many employers still face staffing constraints. With uncertainty still in play, staying agile is key.
Strategic Finance Starts HereThe RBA remains cautious but ready to act if global developments shift. For commercial borrowers, that means staying informed and proactive. Visit addfinance.com.au to explore tailored lending solutions and expert advice to help your business thrive.
