Australia shares hit record high ahead of expected RBA easing

Published 11/08/2025, 02:44
© Reuters.

Investing.com-- Australia’s benchmark stock index hit a record high on Monday as investors bet the Reserve Bank of Australia will cut interest rates at its policy meeting this week.

The S&P/ASX 200 index rose as much as 0.5% to an intraday peak of 8,852.3 points. It was trading 0.3% higher at 8832.3 points by 01:33 GMT. Gains were led by mining, banking, and consumer stocks.

Economists expect the central bank to lower the cash rate by 25 basis points to 3.60% on Tuesday. A Reuters poll showed unanimous forecasts for the move.

The case for a cut has strengthened after inflation slowed to 2.1% in the June quarter, within the RBA’s 2% to 3% target range. Underlying inflation eased to 2.7%.

Meanwhile, the unemployment rate unexpectedly rose to 4.3%, pointing to weaker labour market conditions, further bolstering hopes for a cut.

"We expect the Reserve Bank of Australia (RBA) to cut the cash rate by 25 basis points to 3.6% at Tuesday’s policy meeting," ING analysts said in a note.

"Recent data on growth and inflation came in softer than expected, reinforcing the case for easing," they added.

The rally in Australian shares also took cues from a rebound in global markets, with U.S. stocks closing higher last week.

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