RBA says “no deal” to a rate cut – but what about your bank?
The cash rate stays where it is for now, but it never hurts to ask your lender for a better deal.
The Reserve Bank has held the cash rate at 3.60% at its meeting this afternoon.
This is far from a shock: 100% of Finder's experts predicted the decision to hold.
We've already seen 3 cuts in 2025, totally a reduction of 75 basis points off most borrowers' home loans.
According to the latest inflation figures, the Consumer Price Index (CPI) 3.0% in the last 12 months.
This is a touch higher than the RBA wants it to be, and good enough reason to hold for now.
"With signs that private demand is recovering, indications that inflation may be persistent in some areas and labour market conditions overall remaining stable, the Board decided that it was appropriate to maintain the cash rate at its current level at this meeting," said the RBA board in announcing today's decision.
Today's decision means borrowers will have to wait until early November, when the RBA meets again, to see if there'll be another rate cut.
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"Although the RBA is in a cutting cycle, they are taking a gradual approach to make sure inflation stays in the target range," said University of Sydney professor James Morley.
"Domestic conditions look a bit stronger than previously thought. So they are likely to hold this time and maybe cut in one of the next two rounds."
The Reserve Bank meets again in early November to decide whether to cut or hold the cash rate. Their decision will depend heavily on how low or high inflation is, and on unemployment figures.
What should borrowers do in the meantime?
We've already had 3 rate cuts this year. And most lenders have passed on the full amount each time.
This means any borrower on a variable rate home loan should be enjoying a lower rate already.
But it never hurts to look around for a better deal. You may be surprised to see lenders offering more competitive rates to attract new customers.
Your own lender might even be offering a lower rate only for new customers. If you call them and ask for it, you might be able to get a better deal with a quick phone call.
Sources
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