RBA’s July cash rate decision: a suprise for the market

The Reserve Bank of Australia (RBA) has kept the official cash rate on hold at 3.85% at its July meeting.

The decision reflects mounting signs of a slowdown in the economy. While inflation continues to ease, weaker GDP growth, stagnant retail spending, and a drop in building approvals suggest households are cutting back—tightening their belts in the face of ongoing cost-of-living pressures.

ADVERTISEMENT

“The RBA’s decision to hold rates steady suggests a cautious approach, possibly to assess the impact of previous rate cuts and global economic uncertainties before making further adjustments.” says Shane Petros, CEO of Australian Finance Hub.

What this means for you

For Buyers

1. Check your borrowing power
   With rates steady, lenders are less likely to change serviceability rules short-term. Now’s a great time to see how much you can borrow and whether you’re in a better position than you think.

2. Get pre-approved
   Lock in your loan pre-approval while rates are stable – giving you confidence to move quickly on properties that meet your criteria.

3. Negotiate with confidence
   A rate hold may mean less competition than in boom conditions. Use that to your advantage to negotiate on price or terms.

4. Watch for local price movements
   Some suburbs may soften or stay flat – ideal for buyers waiting to enter. Use tools like Homely to track suburb reviews and stay on the ball with alerts.

5. Budget for future rate rises
   Just because the RBA held doesn’t mean they’re done. Factor in a buffer so you’re not caught off guard if rates move later in the year.

For Sellers

1. Leverage buyer certainty
   Stable rates boost buyer confidence. If you’re thinking of listing, now’s the time to tap into that mindset before any buyer uncertainty returns.

2. Showcase value, not just features
   Emphasise affordability, lifestyle benefits and recent upgrades that save buyers money (like solar or insulation).

3. Price realistically
   A rate hold doesn’t mean a booming market. Work closely with your agent to set a price aligned with current buyer sentiment.

4. Stage your home to stand out
   With buyers still being selective, invest in simple presentation techniques that help your property shine.

5. Promote suburb lifestyle
   Buyers aren’t just purchasing a house—they’re buying into a neighbourhood. Highlight nearby schools, parks, shops and transport.

For Renters

1. Use the pause to plan
   While mortgage repayments aren’t going up (for now), landlords may delay rent hikes. Use this breathing room to assess your next move.

2. Review your lease terms
   If you’re nearing the end of your lease, a stable rate environment could mean more room to negotiate or look for better value elsewhere.

3. Start saving strategically
   If you’re thinking of buying in the future, take advantage of the rate hold to ramp up your deposit while inflation and rental increases ease.

4. Know your rights
   Understand your rights around rent increases in your state, especially during a time when landlords may be considering passing on higher costs.

5. Monitor rent trends
   Keep an eye on rent prices in your area. A hold could stabilise rents temporarily, giving you a better sense of timing for moving or renewing.

Final thoughts

The RBA’s latest move is about more than holding the line. It’s a strategic effort to continue breathe life back into the economy and it may just be what nudges Australia’s property market into its next phase of recovery.

Whether you’re a seasoned investor, first-home buyer, or a renter watching the horizon, Homely is here to help you navigate what’s next.

From suburb reviews to smart alerts, you’ll find the tools and insights you need to stay a step ahead when searching for your perfect place to call home.