FEAR & GREED | Business News RBA cuts rates, warns on productivity; ASX hits high; Star strikes deal
Aug 12, 2025
The Reserve Bank of Australia cuts interest rates, sending the local share market to new heights. Economic growth forecasts are downgraded, yet optimism remains high among Treasurers. Star Entertainment navigates a debt turnaround while airlines adapt to a shift towards premium travel. Meanwhile, a popular family tracking app thrives in today's anxiety-driven society. Discussions on tariffs with China and public safety issues round out the engaging topics, alongside expert insights on the future of interest rates.
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RBA Cuts While Warning On Productivity
- The RBA cut the cash rate to 3.6%, its third cut this cycle, but signalled restraint compared with other countries.
- Governor Michelle Bullock warned productivity remains weak and the bank downgraded medium-term productivity growth to 0.7% per year.
Act Now To Capture Mortgage Savings
- Homeowners will benefit from lower repayments after the 25 basis point cut, so review your mortgage rates now.
- Check with your lender about matched reductions because banks like CBA moved quickly to pass on cuts.
Markets Rally On Rate Relief
- The ASX 200 hit an all-time high after the RBA cut, reflecting market optimism.
- Financials and retailers led gains while industrials lagged, showing sector-specific responses to rate policy.