In July 2025, the Reserve Bank of Australia (RBA) maintained the cash rate at 3.85%, defying
widespread expectations of a 25 basis point cut. The decision reflects the RBA’s cautious approach however, they did indicate that further easing remains likely.
Australia’s economy grew by 0.2% in the March 2025 quarter, down from 0.6% in the previous
quarter, with annual growth steady at 1.3%. However, per capita GDP declined by 0.2%, marking the
ninth contraction in eleven quarters and signaling a return to per capita recession.
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