At the meeting held on August 11 and 12, the policy board unanimously decided to trim the cash rate target by 25 basis points to 3.60 percent, which was the third reduction this year.

Members agreed that - based on what they knew at the time of the meeting - preserving full employment while bringing inflation sustainably back to the midpoint of the target range appeared likely to require some further reduction in the cash rate over the coming year, the minutes said.

Policymakers also agreed that it was important for the pace of decline in the cash rate to be determined by the incoming data on a meeting-by-meeting basis.

Earlier this month, market participants were anticipating a quarter-point cut at the current meeting, with two further reductions by early 2026.

At the meeting, members said it was not possible to judge between different alternative scenarios for the pace of future interest rate reduction, given the prevailing uncertainties.

They emphasized the need to be attentive to the data and to be guided by how they shape the evolving assessment of risks.

The board reiterated that it will remain focused on its mandate to deliver both price stability and full employment and will do what it considers necessary to achieve that outcome.

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