Reserve Bank Of Australia Interest Rates 2025 Outlook. The reserve bank of australia (rba) is responsible for preventing runaway inflation and creating conditions for ‘price stability’. The reserve bank has explained why it made the big move to cut interest rates for the first time in four years warning homeowners it remains “cautious” and suggesting families.

After more than a year of the reserve bank of australia (rba) keeping its cash rate target on hold at 4.35 per cent, forecasts are for at least one 0.25 of a percentage point cut in 2025. The reserve bank sets the target ‘cash rate’, which is the market interest rate on overnight funds.