RBA Interest Rate Cut August 2025 - A Win for Small and Family Businesses
- Future Accounting
- Aug 14
- 3 min read
Updated: Aug 19
Written by: Chris Mulcahy
How the RBA interest rate cut August 2025 can help you grow and save
The RBA interest rate cut August 2025 is welcome news for small and family businesses. The Reserve Bank of Australia has lowered the cash rate by 0.25% to 3.60%, marking its third cut this year.
With inflation now sitting firmly within the 2–3% target range and economic growth slowing, the RBA is shifting from fighting inflation to supporting business activity and household spending. For small and family businesses, this change could be the catalyst for growth, investment, and stronger cash flow.
RBA interest rate cut August 2025 - at a glance
Cash rate: 3.60% (down 0.25%)
Reason: Easing inflation, slower economic growth, and weaker productivity
Productivity outlook: Lowered to 0.7% growth from the previous 1%
Policy stance: Shifting focus from strict inflation control to supporting the broader economy
RBA Governor Michele Bullock says the focus is now on stimulating spending and investment. For businesses, this means a friendlier lending environment and more opportunities to grow.
What this means for future rate cuts
This month’s decision shows the RBA is open to further easing. Analysts are tipping at least one more rate cut before the end of 2025, possibly in November. If inflation remains low, the cash rate could drop to around 3.25% by mid-2026.
Factors that could trigger more cuts:
Rising unemployment or underemployment
Weak retail spending
Global slowdowns in key markets like China and the US
Risks that could slow or pause cuts:
A jump in inflation from energy or rental costs
An overheated housing market
Faster-than-expected wage growth
Practical steps for business owners
Review your loans – If you’re on a variable rate, you’ll feel the benefits quickly. Fixed-rate borrowers should assess refinancing options.
Plan growth now – Cheaper finance makes it easier to invest in equipment, technology, or new premises.
Watch demand signals – Retail, hospitality, and tourism may see spending increases first.
Factor in property shifts – Budget for potential rent increases if your lease is coming up for renewal.
Keep an eye on fixed rates – This can set the future direction of interest rate decisions.
The bottom line
The RBA interest rate cut August 2025 is more than just a drop in numbers, it’s an opportunity. Acting now could mean lower borrowing costs, greater cash flow, and a stronger position for future growth.
If you want to see exactly how this rate cut could improve your repayments, boost your cash flow, and support your long-term plans, book a free planning session with the team at Future Accounting.
Disclaimer
This article does not constitute financial advice and is for general information only. It does not take into account any individual’s personal objectives, situation or needs, and is not intended as professional advice. Any similarity to an individual’s personal circumstances and the examples provided in this article is purely coincidental. Any person acting upon such information without receiving specific advice, does so entirely at their own risk.
Authorisation under an Australian Financial Services Licence (AFSL) is not required in the provision of this article and the author plus Future Accounting Group Pty Ltd is not acting in its capacity as an Australian Financial Services Licence holder
Liability limited by a scheme approved under professional standards legislation.
