RBA Cash Rate Tracker

By Pravin Mahajan & Mahendra Duddempudi

11 Aug 2026

Fact-checked

Add us as a preferred source

Share

The RBA held the cash rate at 4.35% in August because inflation remains too high, while the economy is starting to slow after three rate rises earlier this year. The Board wants to assess the impact of those increases before making another move.

The RBA highlighted several factors:

• Inflation is still too high: Inflation remains above the RBA's 2–3% target and is expected to take until late 2027 to return to around the midpoint of the target range. The RBA also sees risks that inflation could remain higher for longer.
• Higher fuel prices are adding pressure: Conflict in the Middle East and disruptions to global energy supplies have pushed up petrol and diesel prices. The RBA expects these higher costs to flow through to other parts of the economy, adding to inflation.
• The economy is slowing: The three rate rises earlier this year have tightened financial conditions. Consumer spending is slowing, housing activity has cooled in some capital cities and labour market conditions are easing.
• The RBA wants to assess the impact of previous rate rises: With monetary policy now considered somewhat restrictive, the Board decided to hold and see how the economy and inflation respond to the higher rates already in place.
• Another rate rise remains possible: The decision is a pause, rather than a signal that rates have definitely peaked. The RBA said it could raise the cash rate further if the risks to inflation increase.

The RBA monitors several key economic indicators when setting the cash rate, including inflation (both headline and core), GDP growth, unemployment, home prices, and wage growth. Of these, inflation carries the most weight. The RBA's primary mandate is to keep it within the 2–3% target band.

Following each RBA decision, Bheja AI tracks which lenders raised or cut rates and by how much, updated in real time. Enter your loan details to see how the current cash rate affects your monthly repayments.

The RBA cash rate affects more than just your mortgage rate. These guides break down how decisions are made, what the data means, and how lenders are responding, so you can make sense of each move as it happens.

With rates rising, the gap between the big four banks and smaller lenders has widened. These figures reflect live data across 7,215 home loan products, updated throughout the day. The snapshot shows the average variable and fixed rates across the market, the single best available rate right now, and a ranked list of the most competitive lenders by their lowest advertised rate, so you can see at a glance where your rate sits. You can also compare rates across loan types, variable versus fixed, owner-occupied versus investment, and principal and interest versus interest only.

Home Loan Market Snapshot

Real-time insights from thousands of Australian home loan products

Updated: 22 Sept 2026, 11:35 am

Average Variable Rate

6.84%

Owner Occupied P&I

Average Fixed Rate

6.84%

3-year fixed

Best Available Rate

5.64%

Variable • Owner Occupied

Total Products

7,477

Available in market

Most Competitive Lenders

Big 4 Banks Average

7.04%

Market Average

6.84%

Online Lenders Average

6.57%

1

Unloan

4 products

From

5.89%

Avg

6.12%

2

Fire Service Credit Union

5 products

From

5.89%

Avg

6.17%

3

Easy Street

15 products

From

5.95%

Avg

6.28%

4

Up

6 products

From

5.95%

Avg

6.31%

5

Family First

17 products

From

5.75%

Avg

6.35%

Rate Comparison by Category

Variable vs Fixed

Variable

6.84%avg

2,621 products

Fixed

6.84%avg

4,856 products

Owner Occupied vs Investment

Owner Occupied

6.79%avg

3,748 products

Investment

6.90%avg

3,729 products

Principal & Interest vs Interest Only

P&I

6.72%avg

4,298 products

Interest Only

7.01%avg

3,179 products

Market Features Overview

54%

Products with Offset Account

10%

Products with Cashback Offers

$0

Average Cashback Amount

41%

Products with No Fees

(No monthly, annual, or ongoing fees)

Compare home loans

Data sourced from 7,477 home loan products

Analysis based on products supporting minimum $300K loan amounts over 25-year terms

Interest rates move. Your home loan should, too.
Instead of guessing what to do after every RBA rate change, perform a quick Home Loan Health Check and see if your current deal still makes sense.

The cash rate is the interest rate that banks and other financial institutions pay to borrow money from each other overnight. You can also think of it as the wholesale cost of money.

When the RBA changes the cash rate, lenders may adjust their home loan interest rates in response. However, banks are not required to pass on the full increase or decrease. Each lender makes its own decision based on factors such as funding costs, competition and business strategy.

For borrowers on variable-rate home loans, any changes are typically announced within days of an RBA decision and usually take effect within one to two weeks.

As a homeowner, it's important to pay attention to communications from your lender. If your interest rate changes, check when the new rate will take effect and how it may impact your repayments.

More importantly, don't assume your rate remains competitive just because the RBA hasn't moved, or because your lender has passed on a rate cut. Regularly reviewing your mortgage can help you understand how your rate compares with the wider market and whether there may be better options available.

The RBA cash rate doesn't just affect borrowers, it can also influence the interest rates paid on savings accounts and term deposits.

When the RBA increases the cash rate, banks may increase rates on savings products, allowing savers to earn more interest on their money. Conversely, when the RBA cuts the cash rate, savings rates may also fall, reducing the returns available on cash held in the bank.

However, banks are not required to pass on RBA changes in full. Some institutions may increase or decrease savings rates by less than the cash rate move, while others may adjust only selected products.

If you're relying on interest income or building up savings for a home deposit, it's worth reviewing your savings account regularly. The difference between a market-leading savings rate and a below-average one can add up over time, particularly on larger balances.

As with home loans, loyalty doesn't always pay. Comparing savings products periodically can help ensure your money is working as hard as possible.

The RBA cash rate can influence housing demand, borrowing power and property prices, but it is only one of many factors that shape the market.

When interest rates fall, borrowing generally becomes more affordable. This can increase buyers' borrowing capacity and encourage more people to enter the market, which may support property prices. Lower rates can also improve confidence among existing homeowners and investors.

When interest rates rise, the opposite can occur. Higher borrowing costs can reduce purchasing power, make repayments more expensive and slow buyer demand. In some markets, this can place downward pressure on property prices or moderate price growth.

However, the housing market is influenced by much more than interest rates. Housing supply, population growth, employment levels, government policies and consumer confidence all play an important role. As a result, changes in the cash rate do not always lead to immediate or predictable movements in property prices.

For home buyers and homeowners, it's important to look beyond the latest RBA decision and consider the broader market conditions when making property and borrowing decisions.

Written by

Pravin Mahajan

Founder @ Bheja.ai | Mortgage Broker | Ex-CTO RateCity & CIMET

Pravin Mahajan is the Founder of Bheja.ai and an accredited Mortgage Broker (Credit Rep. 570637). Based in Sydney, he sits at the unique intersection of financial regulation and enterprise technology.

With over 30 years of experience, Pravin has architected the consumer platforms that millions of Australians rely on for daily financial and purchasing decisions. His career is defined by building high-scale systems that simplify complex choices:

• RateCity (Acquired by Canstar): As Chief Product & Technology Officer, Pravin led the tech transformation that culminated in the company's acquisition. He orchestrated "Australia’s First Home Loan Sale," a digital initiative that reached over 12 million people.
• CIMET: As CPTO, he built enterprise-grade infrastructure for energy and broadband comparison, scaling operations to support major B2B partners.
• Salmat (Lasoo): He architected digital catalogue systems used by 5.7 million monthly users, digitising the retail experience for brands like Target and Myer.
• Woolworths: Designed the real-time, secure "Pay at Pump" transaction infrastructure deployed Australia-wide.

Today, at Bheja.ai, Pravin combines this deep technical background with his Certificate IV in Finance and Mortgage Broking to build AI agents that don't just compare loans, but help Australians actively secure their financial future.

Mahendra Duddempudi

CTO & Head of Research

Mahendra Duddempudi is the CTO, Founder, and Head of Research at Bheja.ai. With 15+ years in software architecture, data engineering, and analytics, he combines technology and research to simplify complex topics in property, home loans, and finance. His work focuses on using AI, natural language search, and data-driven insights to make financial decisions clearer and more accessible for Australians.

RBA cash rate news and Insights

View All

Pravin Mahajan & Vidhu Bajaj

The "Red Zone": Is your mortgage buffer evaporating?

New data from Roy Morgan shows an increasing number of Australian households are at risk of mortgage stress. Does it mean their mortgage buffers are diminishing and what can be done about it?

6 min readRead

Vidhu Bajaj & Mahendra Duddempudi

RBA holds the cash rate at 4.35%: Could you get a mortgage rate cut anyway?

Even though the RBA didn't announce a rate cut in its August meeting, borrowers can give themselves a rate cut by finding a better deal.

4 min readRead

Vidhu Bajaj & Pravin Mahajan

What is the official cash rate and how is it different from your mortgage rate?

Understand the difference between the official cash rate and your mortgage interest rate, and how it affects you.

9 min readRead