The Reserve Bank of Australia has held the cash rate steady at 3.60 per cent, confirming expectations and signalling that inflation, not housing, remains the central focus for policy.
While a more hawkish tone had been anticipated after higher than expected inflation in recent quarters, the Bank softened its message, noting that part of the latest inflation rise was driven by temporary factors. Even so, the Governor made it clear that future decisions will depend squarely on upcoming inflation data, and that further rate cuts are far from guaranteed.
What this means for buyers
For buyers, today’s decision brings certainty, but not relief. Borrowing costs remain high by recent standards, and the RBA’s cautious stance suggests mortgage rates are likely to stay near current levels for some time.
This means buyers should plan affordability around today’s repayments rather than assume that quick rate cuts will improve borrowing capacity. Competition remains strongest in lower priced suburbs and more affordable capital cities, where buyers can still make the numbers work under current lending conditions. In Sydney and Melbourne, price growth has slowed as borrowing limits are reached, while outer ring suburbs and smaller capitals continue to attract demand.
The message for buyers is simple. Finance readiness matters more than rate timing. Pre approval, buffers for future repayments, and realistic price expectations are now essential. Speak to a trusted broker today to compare rates and get the preapproval you need to make the right decision.
What this means for sellers
For sellers, the rate hold effectively extends a period of relative stability. Prices have lifted over the past year and buyer demand remains solid, particularly where homes fall within accessible price brackets.
In affordable family suburbs, well presented homes are still attracting strong enquiry and competitive bidding. In premium inner city markets, however, buyers are more cautious and pricing expectations need to reflect current borrowing constraints rather than pre rate hike conditions.
If inflation were to soften meaningfully in 2026, future rate cuts could lift buyer demand again. However, until that path is clearer, sellers should expect steady rather than accelerating momentum.
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And for renters
Renters remain under the most strain. Vacancy is extremely tight across most of the country and rents remain elevated after several years of rapid increases. Today’s decision does not bring immediate relief, but it does reduce the risk of another round of rent rises being driven purely by higher landlord interest costs.
Real improvement for renters will depend far more on new housing supply than on interest rates alone.
