Sydney, August 7, 2025 — National Australia Bank (NAB) has slashed its fixed mortgage rates by 0.25 percentage points, signaling growing anticipation of an imminent interest rate cut by the Reserve Bank of Australia (RBA).
The decision affects a range of NAB’s fixed-rate home loan products and comes amid increasing market confidence that the RBA will cut the official cash rate in its upcoming meeting, with analysts describing the move as a “near-certainty.”
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Market Confidence in RBA Cut Grows
Economists and investors have been pricing in an RBA cut for weeks, citing slowing inflation, weaker consumer spending, and ongoing cost-of-living pressures. NAB’s rate adjustment is being viewed as a preemptive response to easing monetary policy and growing competition in the mortgage market.
“NAB’s decision reflects both the market sentiment and a broader shift in monetary policy expectations,” said AMP Capital chief economist Shane Oliver. “Lenders are positioning themselves ahead of what is now considered a highly likely move from the RBA.”
New Rates to Benefit Borrowers
The 0.25% cut applies to both owner-occupier and investor fixed-rate products, offering some relief to new borrowers and those refinancing in a high-cost environment.
A NAB spokesperson confirmed that the move was part of the bank’s commitment to “support customers in achieving homeownership, especially during a time of economic uncertainty.”
Mortgage comparison site Canstar said the reduction could save borrowers thousands over the life of a loan, depending on the loan size and term.
RBA Expected to Cut Rate Soon
The RBA’s next interest rate decision is scheduled for early next week, with futures markets pricing in a 90% probability of a cut. Should it go ahead, it will mark the first rate reduction since early 2023.
Some experts believe the central bank may move more than once in the second half of 2025, depending on data trends and global economic pressures.
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