RBA Cash Rate Tracker
Get the latest updates on the Reserve Bank of Australia’s cash rate decisions and explore how these changes shape the economy, inflation, and lending rates.
Historical Rate Trend
RBA Cash Rate Target over time
Previous RBA Cash Rate Target3.60%
How much will you save after the RBA rate cut?
Ask Bheja, your AI mortgage copilot, how the latest RBA cash rate change affects your home loan. Enter your loan details to instantly see potential savings on your repayments.
The ultimate guide to RBA cash rate changes
A deep dive into how shifts in the Reserve Bank’s cash rate influence inflation, growth, and investment trends and what it means for households and businesses.
- The RBA held the cash rate at its November 2025 meeting. The current cash rate is 3.60%.
- The RBA uses the cash rate to manage inflation within its 2–3% target, and reviews it eight times a year.
- A 25 basis point cut can reduce monthly repayments by around $100 on a $600,000 variable loan.
- The next decision is due on 8-9 December 2025.
Understanding how the RBA's Decides the cash rate
The RBA’s board meets eight times a year, roughly every six weeks and over two days to decide whether to raise, cut, or hold the cash rate, with a decision announced on the second day (always a Tuesday) at 2:30 pm (AEST/AEDT).
These decisions directly affect home loan rates, borrowing costs, and Australia’s overall economy.
The RBA’s goal is simple:
✅ Keep inflation between 2–3%
✅ Support jobs and economic growth
To do that, it studies a wide range of economic data before making any move.
Key economic indicators driving RBA cash rate decisions
Explore the latest data shaping Australia’s cash rate, including inflation, employment, GDP growth, and consumer spending. Track historical trends and see how these indicators guide future rate moves.
Economic Highlights
- Inflation indicators show an upward trend, with CPI at 3.5% and trimmed mean at 3%.
- Unemployment rate has risen to 4.46%, indicating a softening labour market.
- Mean dwelling prices surged, now exceeding one million dollars, continuing their upward trend.
Inflation (CPI)
Consumer Price Index measuring changes in the cost of living. Both headline and core (trimmed mean) inflation are measured quarterly, comparing to the same quarter last year.
Headline Inflation (YoY)
4 Quarters Ago
Core Inflation - Trimmed Mean (YoY)
4 Quarters Ago
Headline Inflation Trend (Quarterly)
Core Inflation Trend (Quarterly)
💡Expert Insights
Key Takeaway
The most telling part here isn't just the yearly figure, but that recent quickening in prices quarter-over-quarter. It suggests inflationary pressures are gaining some new momentum.
What's Happening
Inflation's picked up a bit recently. We're now seeing 3.2% year-over-year, which is higher than the 2.1% from last quarter and the 2.4% from six months ago. While it's way down from the 7.8% we experienced a year ago, that recent quarterly acceleration from 0.7% to 1.3% is a noticeable shift.
Impact on Borrowing
This kind of upward movement in prices generally pushes central banks to consider higher interest rates. So, borrowing money for homes or other big purchases could potentially get more expensive.
Unemployment Rate
This indicator tracks the percentage of people actively looking for a job but unable to find one. It's a crucial snapshot of the job market's health.
Current Value
Quarterly Change
rose to a higher level
Same Time Last Year
June 2025
12-Month Trend
💡Expert Insights
Key Takeaway
This latest uptick in unemployment could be an early sign that the job market is starting to weaken. It’s definitely a figure that central bankers will be scrutinizing.
What's Happening
The unemployment rate just edged up to 4.46%, quite a jump from last month's 4.26%. It had been fairly stable around 4.25% for a few months, but this recent increase is noticeable. We're also higher than the 4.10% seen this time last year.
Impact on Borrowing
A rising unemployment rate often suggests a cooling economy. This could prompt central banks to consider rate cuts to encourage spending and investment, making borrowing more affordable.
GDP Growth
This measures how much our economy's total output of goods and services is growing each quarter. It's a key indicator of economic health and activity.
Current Value
12-Month Trend
💡Expert Insights
Key Takeaway
The consistent bouncing between modest growth rates suggests the economy is navigating a slightly choppy but overall stable path. We're seeing resilience, not rapid expansion.
What's Happening
Well, the economy just grew by 0.6%, which is double last quarter's 0.3%. We were also at 0.6% six months ago, so it's a return to that level. It's a bit better than the 0.5% growth from this time last year.
Impact on Borrowing
A moderate growth rate like this usually means interest rates will stay pretty stable. It's not strong enough to push for hikes, nor weak enough to demand cuts right away.
Home Prices
This essentially tells us the average price of a home. It gives a good sense of how much houses are generally selling for in the market.
Current Value
Quarterly Change
rose by 1.4%
Same Time Last Year
September 2024
12-Month Trend
💡Expert Insights
Key Takeaway
Despite what some expected, the housing market shows remarkable resilience, with demand seemingly outstripping supply. This persistent growth indicates a strong underlying confidence, or perhaps just a very tight inventory.
What's Happening
Well, we're seeing prices hit 1016.7 as of June. That's a decent jump from 1002.6 just three months prior. Compared to last year, when it was 890.5, it’s quite a surge, actually. It seems the market is definitely heating up after being somewhat steady around six months ago.
Impact on Borrowing
Continued price increases could signal a robust economy, potentially pushing central banks to maintain higher interest rates or even consider further hikes to cool things down. This means borrowing costs for mortgages might not ease up soon.
Wage Growth
The Wage Price Index tracks changes in the base wage rates for a consistent set of jobs, showing how much employers are actually paying for work, separate from promotions or job changes.
Current Value
Quarterly Change
remained stable to the same level
Same Time Last Year
September 2024
12-Month Trend
💡Expert Insights
Key Takeaway
The recent stability in wage growth suggests inflation might be harder to bring down quickly. It indicates underlying strength in the labor market, keeping a floor under price pressures.
What's Happening
Wage growth has held steady at 3.4% for the past two quarters, which is interesting. We saw it dip to 3.2% late last year and six months ago, after reaching 3.5% last September. Overall, it's a bit higher than a year ago.
Impact on Borrowing
If wage growth remains steady, it could signal ongoing inflation pressures. This might encourage central banks to keep interest rates elevated for longer to cool the economy, impacting borrowing costs.
Ready to act on these insights?
Use our tools and talk to experts to understand how these economic conditions affect your home loan
Home Loan Market Snapshot
Real-time insights from thousands of Australian home loan products
Updated: 6 Nov 2025, 07:51 pm
Average Variable Rate
6.20%
Owner Occupied P&I
Average Fixed Rate
5.77%
3-year fixed
Best Available Rate
4.64%
Fixed • Owner Occupied
Total Products
7,399
Available in market
Most Competitive Lenders
Big 4 Banks Average
6.10%
Market Average
5.92%
Online Lenders Average
5.47%
Easy Street
13 products
From
4.89%
Avg
5.23%
Up
6 products
From
4.95%
Avg
5.23%
gmcu
20 products
From
4.99%
Avg
5.34%
ORANGE CREDIT UNION LTD
15 products
From
5.09%
Avg
5.38%
Australian Mutual Bank LTD
38 products
From
4.64%
Avg
5.40%
Rate Comparison by Category
Variable vs Fixed
2,516 products
4,883 products
Owner Occupied vs Investment
3,680 products
3,631 products
Principal & Interest vs Interest Only
4,301 products
2,992 products
Market Features Overview
Products with Offset Account
Products with Cashback Offers
Average Cashback Amount
Products with No Fees
(No monthly, annual, or ongoing fees)
Data sourced from 7,399 home loan products
Analysis based on products supporting minimum $300K loan amounts over 25-year terms
What is the cash rate?
The cash rate is the interest rate the Reserve Bank of Australia (RBA) sets for overnight loans between commercial banks. This rate helps shape interest rates on mortgages, personal loans, savings accounts, and other financial products across the economy.
Banks borrow and lend money overnight in the interbank market. The RBA steps in to keep the cash rate near its official target, which then acts as the base for setting interest rates throughout the economy.
Adjusting the cash rate helps manage inflation, economic growth, and jobs. Lowering the cash rate encourages people and businesses to spend and invest more. Raising it helps slow things down if the economy is growing too fast.
What is the RBA and how does it control the cash rate?
The Reserve Bank of Australia is the nation’s central bank. Its main job is to keep the economy stable, support jobs, and keep inflation low. The official cash rate is one of its main tools for doing this.
The RBA Board meets often to check on Australia’s economy. If inflation is too high or growth is too fast, they might raise the cash rate. If the economy is slowing or inflation is low, they might lower the rate to encourage more spending and investment.
The RBA changes interest rates to help the economy grow steadily and to keep inflation within its 2–3% target range.
How Often Does the RBA Change the Cash Rate?
The Reserve Bank of Australia (RBA) Board meets eight times per year to review economic conditions and determine the official cash rate. These meetings typically span two days, allowing the Board to thoroughly assess the latest economic indicators, including inflation trends, employment data, and global financial developments.
Based on this assessment, the Board may choose to adjust the cash rate or maintain it at the current level.
RBA cash rate meeting schedule and decisions 2025
What's the RBA cash rate history?
The RBA’s cash rate has fluctuated significantly over the years. It reached a peak of 17.50% in January 1990 as the Reserve Bank aimed to control high inflation. During the COVID-19 pandemic, the rate was lowered to a historic low of 0.10% in November 2020 to support the economy. From 1990 to 2025, the average cash rate was approximately 3.87%. Currently, at 4.10%, the rate is slightly above this long-term average, reflecting a moderately restrictive monetary policy stance aimed at curbing inflation. However, recent rate cuts suggest the RBA is beginning to ease policy as inflation shows signs of easing.
Looking ahead, major banks and analysts don't expect further rate cuts through 2025. However, some experts have suggested the possibility of a rate cut early next year.
When does the RBA change the cash rate?
When the RBA raises the cash rate?
The RBA raises the cash rate when it needs to cool the economy and control inflation. If prices rise too fast, such as in housing, groceries, or fuel so the RBA may act to slow demand.
A higher cash rate makes loans and mortgages more expensive but encourages saving. This reduces demand in the economy, helping bring inflation back within the RBA’s target range of 2–3%.
When the RBA cuts the cash rate?
The RBA cuts the cash rate when it wants to stimulate the economy. This usually happens during periods of high unemployment or slow economic growth.
Lowering the cash rate makes loans cheaper, encourages business investment, and boosts consumer spending. For example, in November 2020, the RBA dropped the cash rate to 0.10% to support Australia’s recovery from the economic impact of COVID-19.
When the RBA keeps the cash rate on hold?
The RBA may hold the cash rate steady when the economy is balanced, meaning inflation is under control, unemployment is low, and growth is sustainable.
In these conditions, maintaining the current cash rate helps preserve price stability and long-term confidence in Australia’s financial system.
RBA Cash Rate vs Mortgage Rate Explained
The RBA cash rate and home loan interest rates are connected but not the same. The cash rate is the RBA’s target for the overnight interbank lending market. It sets the benchmark for the cost of money in the financial system.
Your mortgage rate, on the other hand, is what a bank or lender charges you to borrow money for your home loan.
When the RBA cuts the cash rate, banks often reduce their variable mortgage rates, making home loans cheaper. However, this depends on each lender’s funding costs, market competition, and profit strategy, meaning not every rate cut is passed on in full.
Fixed home loan rates are influenced more by long-term market expectations and global bond yields than by the immediate cash rate. That’s why fixed rates don’t always move in sync with the RBA’s decisions.
Does the cash rate affect bank interest rates?
Yes. The RBA cash rate has a direct impact on how banks and lenders set their interest rates, though the link isn’t always one-to-one.
When the Reserve Bank of Australia (RBA) changes the cash rate, it changes the cost of borrowing money for banks.
- A higher cash rate makes it more expensive for banks to borrow funds, which often leads to higher home loan rates for borrowers.
- A lower cash rate reduces funding costs, allowing banks to lower their variable loan rates and stimulate borrowing.
However, not all rate changes move in perfect sync with the RBA.
Banks also rely on customer deposits, offshore funding, and wholesale markets, which can move independently of the cash rate.
That’s why lenders sometimes adjust rates out of cycle with the RBA’s decisions.
How banks and lenders set their interest rates?
Banks consider multiple factors when deciding on interest rates:
- The RBA cash rate and other wholesale funding costs
- The interest they pay on customer deposits
- Their assessment of risk for different loan types
- Competitive pressure from other banks and lenders
- Their target profit margins and business goals
These combined factors determine how much a bank charges for home loans and why rates can vary so much between lenders.
Why banks don’t always pass on rate cuts?
When the RBA lowers the cash rate, most people expect banks to cut home loan rates too but that doesn’t always happen.
Banks set their rates based on more than just the RBA decision. They also consider their own funding costs, including customer deposits, offshore borrowing, and the Bank Bill Swap Rate (BBSW) which can move independently of the RBA’s cash rate.
If these costs rise, banks may hold back some or all of a rate cut to protect their profit margins. Often, they pass on discounts only to new customers, while existing borrowers stay on higher “back-book” rates.
This approach helps banks balance customer competition, profitability, and financial stability, especially when markets are volatile.
In short:
- RBA cuts don’t always mean lower home loan rates.
- Banks weigh multiple funding and market factors.
- New customers often get better rates than existing ones.
RBA Cash Rate: What It Means for You?
Changes to the RBA’s cash rate ripple through the entire economy — shaping home loan rates, savings returns, business investment, and property prices.
It’s important to remember that a change in the official cash rate doesn’t automatically mean banks will move their rates the same way. Each lender decides whether to pass on rate changes based on their funding costs, profit margins, and market competition.
Here’s how different groups are affected:
Borrowers
When the cash rate falls, lenders often lower variable home loan rates, reducing monthly repayments. When it rises, repayments usually increase. Either way, it’s a good time to check your home loan rate and see if refinancing could save you money.
Savers
Rate cuts usually mean lower returns on savings accounts and term deposits. Rate hikes can improve deposit rates, though outcomes vary by bank.
Property buyers
Lower rates boost borrowing power and can lift property prices as demand grows. Higher rates reduce affordability, helping cool the housing market.
Investors
Falling rates tend to support share markets and property investments, as investors seek higher returns. Rising rates can make bonds and fixed income more attractive, shifting money away from riskier assets.
Households and businesses
Changes in the cash rate affect spending confidence. Lower rates can support household budgets and business borrowing, while higher rates typically slow spending to curb inflation.
The RBA cash rate is one of Australia’s most powerful economic tools — but it doesn’t guarantee banks will follow suit. Staying informed, comparing rates, and reviewing your financial position regularly can help you make the most of every rate change.
How’s your rate is holding up?
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.
Ask Bheja to:
- Check if you’re overpaying on your current rate
- Compare your loan with the latest RBA cash rate impact
- Estimate potential savings from refinancing
- Discover if fixing or splitting could improve flexibility
It only takes a minute to find out if your home loan is still working for you.
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Frequently Asked Questions
The RBA Cash Rate is the official interest rate target set by the Reserve Bank of Australia for overnight loans between banks. It serves as the primary tool for the RBA to implement monetary policy and influence economic activity, inflation, and employment levels across Australia.
Pravin Mahajan
Founder
Pravin Mahajan is a seasoned technology leader with deep expertise in financial innovation and product strategy. He focuses on leveraging AI and automation to streamline financial processes, making them more accessible and efficient. Passionate about digital transformation, Pravin drives innovation in fintech, helping businesses and consumers adapt to an evolving financial landscape. His insights on technology, finance, and product strategy are widely recognised in industry forums.
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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.
