The Reserve Bank of Australia has confirmed that it will drop the cash rate by 25 basis points at August’s board meeting.
If banks pass on the rate cut in full, the 0.25% reduction will translate to $97 in monthly repayment savings – around $1,164 a year – for borrowers with an average loan of $600,000.
Compare the Market’s Economic Director David Koch urged Australians to look for savings beyond relief offered by the RBA.
“We have to be more vigilant ourselves to make sure we’re getting a good deal,” Mr Koch said.
“Compare the Market has found there can be a 0.50% difference between some advertised rates from the big banks so you can effectively create a rate cut of your own.
As we did in February and May, Compare the Market is tracking interest rate movements from some of Australia’s biggest banks and lenders. How are the banks moving? Watch this space to find out.
Previous rate cuts:
- February 2025: 25 basis points
- May 2025: 25 basis points
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Big four bank moves
ANZ
Rate move: 0.25%
Customers set to benefit: Variable home loan interest rates
Effective from: 22 August 2025
Commonwealth Bank
Rate move: 0.25%
Customers set to benefit: Home loan variable interest rates
Effective from: 22 August 2025
NAB
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
Westpac
Rate move: 0.25%
Customers set to benefit: Variable home loan interest rates
Effective from: 26 August 2025
Other lender moves
AMP
Rate move: 0.25%
Customers set to benefit: Variable lending rates for new and existing owner occupiers and investors
Effective from: 22 August 2025 for new customers and 25 August 2025 for existing customers
Bank of Melbourne
Rate move: 0.25%
Customers set to benefit: Variable home loan interest rates
Effective from: 26 August 2025
Bank SA
Rate move: 0.25%
Customers set to benefit: Variable home loan interest rates
Effective from: 26 August 2025
Bankwest
Rate move: 0.25%
Customers set to benefit: Variable home loan interest rates
Effective from: 22 August 2025
Bendigo Bank
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
HSBC
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
ING
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
Macquarie
Rate move: 0.25%
Customers set to benefit: Variable home loan reference rates
Effective from: 15 August 2025
ME
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
Pepper Money
Rate move: 0.25%
Customers set to benefit: Existing variable interest rate loans including all variable home loans, variable commercial real estate, variable construction and Self-Managed Super Fund (SMSF) loans.
Effective from: 28 August 2025
St. George
Rate move: 0.25%
Customers set to benefit: New and existing home loan variable rate products
Effective from: 26 August 2025
Suncorp
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
Ubank
Rate move: TBC
Customers set to benefit: TBC
Effective from: TBC
All banks and lenders may not be included in this list. We’ve included the lenders on our panel.
The information on this page is general only – check with your lender for further details on their interest changes and how you might be affected.
This page was last updated 12 August 2025.
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