RBA Holds Rates Steady: What Buyers and Sellers Need to Know?
At its 6th monetary policy meeting of the year, the Reserve Bank of Australia (RBA) held the cash rate steady at 3.60%. While the decision wasn’t a surprise, it has sparked plenty of conversation across the property and finance sectors.
Here’s a breakdown of what happened — and what it means for you — in a simple Q&A format.
Q: What did the RBA decide at its latest meeting?
A: The RBA chose to hold the cash rate at 3.60%, maintaining its current stance on monetary policy.
Q: Was this decision expected?
A: Yes. Most major banks and economists had predicted a hold, with November being flagged as the earliest possible month for a rate cut.
Q: What influenced the RBA’s decision to hold?
A: The latest Consumer Price Index (CPI) data was a key factor. Inflation rose to 3% in August, up from 2.8% in July, placing it at the top of the RBA’s target range of 2–3%.
Q: Was there any chance of a rate cut in September?
A: According to Canstar, a September cut was “always an outside chance.” The higher-than-expected inflation figures made a hold more likely.
Q: What’s the recent pattern in RBA decisions?
A: This year, the RBA has followed each rate cut with a hold. For example, the August meeting saw a 25-basis-point cut, making the September hold consistent with recent trends.
Q: What are industry leaders saying?
A: Anthony Waldron, CEO of Mortgage Choice, noted that the RBA is taking a long-term view and expects the September CPI data to heavily influence the November decision.
- He also encouraged buyers to start preparing now, even without a rate cut, as the market remains competitive.
Q: What advice is being given to borrowers?
A: Peter White, Managing Director of the Finance Brokers Association of Australia (FBAA), advised borrowers not to budget based on the assumption of a rate cut.
- He recommended speaking with lenders about rate reductions and exploring refinancing options, especially through mortgage brokers who have access to second-tier and non-bank lenders.
Q: What does NAB say about future rate cuts?
A: NAB predicts there won’t be another rate cut until May 2026, meaning borrowers shouldn’t expect rate relief for many months.
Q: Are there any opportunities for buyers right now?
A: Yes. Adam Brown, NAB’s Head of Broker Distribution, highlighted the upcoming expansion of the Home Guarantee Scheme, which allows first home buyers to purchase with just a 5% deposit.
He sees this as a great time for brokers to support buyers entering the market and guide them through the process.
Final Thoughts
While the RBA’s decision to hold rates may not bring immediate relief, it does offer stability — and a chance for buyers and sellers to plan ahead. Whether you're entering the market for the first time or considering refinancing, now is a great time to seek expert advice and explore your options.