RBA holds cash rate at 4.35%: is the rate rise cycle over?
Key takeaways
- The Reserve Bank of Australia (RBA) held the cash rate at 4.35% at its meeting today.
- 92% of Finder's experts predicted today's decision, citing falling inflation and house prices.
- What's next: 44% of these experts believe another rate rise is coming this year.
The RBA has once again kept interest rates on hold at today's meeting. This is good news for borrowers: lenders won't be increasing their home loan rates again this month.
Today's move was widely predicted off the back of better-than-expected (although still high) inflation figures.
92% of the experts in Finder's RBA survey predicted today's hold.
Is this the end of rate hikes?
We're not completely out of the woods yet. While inflation is slowing down, it's still not quite low enough for the RBA's liking.
"Financial conditions are now tighter than they were, and the economy appears to be slowing as expected," said the RBA in a statement.
"But inflation is still too high."
44% of Finder's experts think there's at least one more rate hike coming at some point in 2026. That's down from 55% last month.
The next inflation statistics come out at the end of August, and will be the clearest indicator of whether the RBA maintains the current cash rate or raises it higher.
One more rate hike would take interest rates to highs not seen since 2011.
What should consumers do?
For now, nothing. A hold is good news for borrowers. It means your repayments aren't about to increase. But it's never a bad time to shop around and see if you can get a lower interest rate with a new lender.
Want a better home loan?
Switch to a better deal
If you've got some money in the bank, or are trying to grow your savings, it's a great time to get more interest on your money.
Savings rates are paying well above 5%, and you could lock up some money in a term deposit if you want a guaranteed return.
Sources
Ask a question